Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 29, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'UFS | ' |
Entity Registrant Name | 'DOMTAR CORP | ' |
Entity Central Index Key | '0001381531 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 65,001,104 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Sales | $1,385 | $1,312 | $2,779 | $2,657 |
Operating expenses | ' | ' | ' | ' |
Cost of sales, excluding depreciation and amortization | 1,108 | 1,082 | 2,211 | 2,164 |
Depreciation and amortization | 96 | 93 | 195 | 188 |
Selling, general and administrative | 100 | 95 | 214 | 186 |
Impairment and write-down of property, plant and equipment (NOTE 12) | ' | 5 | ' | 15 |
Closure and restructuring costs (NOTE 12) | ' | 18 | 1 | 18 |
Other operating loss, net (NOTE 7) | 2 | 49 | 0 | 67 |
Operating expenses | 1,306 | 1,342 | 2,621 | 2,638 |
Operating income (loss) | 79 | -30 | 158 | 19 |
Interest expense, net | 26 | 21 | 51 | 46 |
(Loss) earnings before income taxes and equity loss | 53 | -51 | 107 | -27 |
Income tax expense (benefit) | 13 | -5 | 28 | -27 |
Equity loss, net of taxes | ' | ' | ' | 1 |
Net (loss) earnings | 40 | -46 | 79 | -1 |
Per common share (in dollars) (NOTE 5) | ' | ' | ' | ' |
Basic | $0.62 | ($0.69) | $1.22 | ($0.01) |
Diluted | $0.61 | ($0.69) | $1.22 | ($0.01) |
Weighted average number of common and exchangeable shares outstanding (millions) | ' | ' | ' | ' |
Basic | 65 | 66.9 | 64.9 | 68.2 |
Diluted | 65.1 | 66.9 | 65 | 68.2 |
Net earnings (loss) | 40 | -46 | 79 | -1 |
Net derivative gains (losses) on cash flow hedges: | ' | ' | ' | ' |
Net gains (losses) arising during the period, net of tax of $6 and $3, respectively (2013 - $(5) and $(5), respectively) | 8 | -9 | 5 | -8 |
Less: Reclassification adjustment for losses included in net earnings (loss), net of tax of $(1) and $(3), respectively (2013 - nil and $(1), respectively) | 1 | ' | 3 | 1 |
Foreign currency translation adjustments | 24 | -33 | -12 | -60 |
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, net of tax of $(1) and $(2), respectively (2013 - $(6) and $(8), respectively) | 3 | 16 | 5 | 21 |
Other comprehensive income (loss) | 36 | -26 | 1 | -46 |
Comprehensive income (loss) | $76 | ($72) | $80 | ($47) |
Consolidated_Statements_of_Ear1
Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net gains (losses) arising during the period, tax | $6 | ($5) | $3 | ($5) |
Reclassification adjustment for losses included in net earnings (loss), tax | -1 | ' | -3 | -1 |
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, tax | ($1) | ($6) | ($2) | ($8) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $85 | $655 |
Receivables, less allowances of $7 and $4 | 675 | 601 |
Inventories (NOTE 9) | 728 | 685 |
Prepaid expenses | 37 | 23 |
Income and other taxes receivable | 54 | 61 |
Deferred income taxes | 46 | 52 |
Total current assets | 1,625 | 2,077 |
Property, plant and equipment, at cost | 9,032 | 8,883 |
Accumulated depreciation | -5,766 | -5,594 |
Net property, plant and equipment | 3,266 | 3,289 |
Goodwill (NOTE 10) | 655 | 369 |
Intangible assets, net of amortization (NOTE 11) | 648 | 407 |
Other assets | 145 | 136 |
Total assets | 6,339 | 6,278 |
Liabilities and shareholders' equity | ' | ' |
Bank indebtedness | 15 | 15 |
Trade and other payables | 702 | 673 |
Income and other taxes payable | 32 | 17 |
Long-term debt due within one year | 7 | 4 |
Total current liabilities | 756 | 709 |
Long-term debt | 1,410 | 1,510 |
Deferred income taxes and other | 998 | 923 |
Other liabilities and deferred credits | 349 | 354 |
Commitments and contingencies (NOTE 15) | ' | ' |
Shareholders' equity | ' | ' |
Common stock $0.01 par value; authorized 2,000,000,000 shares; issued: 65,001,104 and 85,148,956 shares | 1 | ' |
Treasury stock (NOTE 14) $0.01 par value; nil and 21,434,054 shares | 0 | ' |
Exchangeable shares No par value; unlimited shares authorized; issued and held by nonaffiliates: nil and 1,123,020 shares | ' | 44 |
Additional paid-in capital | 2,048 | 1,999 |
Retained earnings | 841 | 804 |
Accumulated other comprehensive loss | -64 | -65 |
Total shareholders' equity | 2,826 | 2,782 |
Total liabilities and shareholders' equity | $6,339 | $6,278 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Receivables, allowances | $7 | $4 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 65,001,104 | 85,148,956 |
Treasury stock, par value | $0.01 | $0.01 |
Treasury stock, shares | ' | 21,434,054 |
Exchangeable shares, no par value | ' | ' |
Exchangeable shares, issued | ' | ' |
Exchangeable shares, held by nonaffiliates | ' | 1,123,020 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Issued and outstanding common and exchangeable shares [Member] | Common stock, at par [Member] | Exchangeable shares [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive loss [Member] |
In Millions, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||
Balance at Dec. 31, 2013 | $2,782 | ' | ' | $44 | $1,999 | $804 | ($65) |
Balance, Shares at Dec. 31, 2013 | ' | 32.4 | ' | ' | ' | ' | ' |
Conversion of exchangeable shares | 0 | ' | ' | -12 | 12 | ' | ' |
Conversion of exchangeable shares, Shares | ' | ' | ' | ' | ' | ' | ' |
Stock split | 1 | 32.5 | 1 | ' | ' | ' | ' |
Redemption of exchangeable shares | 0 | ' | ' | -32 | 32 | ' | ' |
Stock-based compensation, net of tax | 5 | ' | ' | ' | 5 | ' | ' |
Stock-based compensation, shares | ' | 0.1 | ' | ' | ' | ' | ' |
Net earnings | 79 | ' | ' | ' | ' | 79 | ' |
Net derivative gains on cash flow hedges: | ' | ' | ' | ' | ' | ' | ' |
Net gains arising during the period, net of tax of $3 | 5 | ' | ' | ' | ' | ' | 5 |
Less: Reclassification adjustments for losses included in net earnings, net of tax of $(3) | 3 | ' | ' | ' | ' | ' | 3 |
Foreign currency translation adjustments | -12 | ' | ' | ' | ' | ' | -12 |
Change in unrecognized gains and prior service cost related to pension and post retirement benefit plans, net of tax of $(2) | 5 | ' | ' | ' | ' | ' | 5 |
Cash dividends | -42 | ' | ' | ' | ' | -42 | ' |
Balance at Jun. 30, 2014 | $2,826 | ' | ' | $0 | $2,048 | $841 | ($64) |
Balance, Shares at Jun. 30, 2014 | ' | 65 | 1 | ' | ' | ' | ' |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement Of Stockholders Equity [Abstract] | ' | ' | ' | ' |
Net gains arising during the period, tax | $6 | ($5) | $3 | ($5) |
Reclassification adjustment for losses included in net earnings (loss), tax | -1 | ' | -3 | -1 |
Change in unrecognized gains and prior service cost related to pension and post retirement benefit plans, tax | ($1) | ($6) | ($2) | ($8) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities | ' | ' |
Net earnings (loss) | $79 | ($1) |
Adjustments to reconcile net earnings (loss) to cash flows from operating activities | ' | ' |
Depreciation and amortization | 195 | 188 |
Deferred income taxes and tax uncertainties | -6 | ' |
Impairment and write-down of property, plant and equipment | ' | 15 |
Net gains on disposals of property, plant and equipment | ' | -10 |
Stock-based compensation expense | 3 | 3 |
Equity loss, net of taxes | ' | 1 |
Other | 6 | -2 |
Changes in assets and liabilities, excluding the effects of acquisition of businesses | ' | ' |
Receivables | 24 | -30 |
Inventories | -18 | -10 |
Prepaid expenses | -9 | -7 |
Trade and other payables | -43 | 19 |
Income and other taxes | 23 | -9 |
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense | -6 | 26 |
Other assets and other liabilities | -3 | ' |
Cash flows provided from operating activities | 245 | 183 |
Investing activities | ' | ' |
Additions to property, plant and equipment | -101 | -118 |
Proceeds from disposals of property, plant and equipment | 1 | 10 |
Acquisition of businesses, net of cash acquired | -546 | -11 |
Investment in joint venture | ' | -1 |
Cash flows used for investing activities | -646 | -120 |
Financing activities | ' | ' |
Dividend payments | -36 | -31 |
Net change in bank indebtedness | ' | -17 |
Change in revolving bank credit facility | -140 | ' |
Proceeds from receivables securitization facilities | 90 | ' |
Payments on receivables securitization facilities | -84 | ' |
Repayment of long-term debt | -3 | -97 |
Stock repurchase | ' | -147 |
Other | 4 | 1 |
Cash flows (used for) provided from financing activities | -169 | -291 |
Net decrease in cash and cash equivalents | -570 | -228 |
Impact of foreign exchange on cash | ' | -1 |
Cash and cash equivalents at beginning of period | 655 | 661 |
Cash and cash equivalents at end of period | 85 | 432 |
Supplemental cash flow information | ' | ' |
Interest (including $2 million of tender offer premiums in 2013) | 44 | 27 |
Income taxes paid (refund), net | $19 | ($9) |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2013 |
Statement Of Cash Flows [Abstract] | ' |
Premium on extinguishment of debt | $2 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
NOTE 1. | |
BASIS OF PRESENTATION | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, in the opinion of Management, include all adjustments that are necessary for the fair statement of Domtar Corporation’s (“the Company”) financial position, results of operations, and cash flows for the interim periods presented. Results for the first six months of the year may not necessarily be indicative of full year results. It is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Domtar Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2013, as filed with the Securities and Exchange Commission. The December 31, 2013 Consolidated Balance Sheet, presented for comparative purposes in this interim report, was derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Changes And Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
NOTE 2. | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
ACCOUNTING CHANGES IMPLEMENTED | |
FOREIGN CURRENCY MATTERS | |
In March 2013, the FASB issued ASU 2013-05, an update to Foreign Currency Matters, which indicates that a cumulative translation adjustment is attached to the parent’s investment in a foreign entity and should be released in a manner consistent with the derecognition guidance on investments in entities. Thus, the entire amount of the cumulative translation adjustment associated with the foreign entity would be released when there has been (1) a sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity; (2) a loss of a controlling financial interest in an investment in a foreign entity; or (3) a step acquisition for a foreign entity. The update does not change the requirement to release a pro rata portion of the cumulative translation adjustment of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. | |
The Company adopted the new requirement on January 1, 2014 with no impact on the company’s consolidated financial statements, as no triggering event occurred throughout the period. | |
INCOME TAXES | |
In July 2013, the FASB issued ASU 2013-11, which provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a NOL or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This accounting standard update requires entities to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. | |
The Company adopted the new requirement on January 1, 2014 with no material impact on the Company’s consolidated financial statements except for the change in presentation. | |
FUTURE ACCOUNTING CHANGES | |
DISCONTINUED OPERATIONS | |
In April 2014, the FASB issued ASU 2014-08, an update on Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in this update change the requirements for reporting discontinued operations and require additional disclosures for both disposal transactions that meet the criteria for a discontinued operation and disposals that do not meet these criteria. The objective of this update is to reach a greater convergence between the FASB’s and IASB’s reporting requirements for discontinued operations. The amendments are effective for interim and annual periods beginning after December 15, 2014 and will not have an impact on the Company’s consolidated financial statements unless a disposal transaction occurs after the effective date. | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
In May 2014, the FASB issued ASU 2014-9, an update on revenue from contracts with customers. The core principal of this guideline is that an entity should recognize revenue, to depict the transfer of promised goods or services to customers, in an amount that reflects the consideration for which the entity is entitled to, in exchange for those goods and services. Guidance in this section supersedes the revenue recognition requirements found in topic 605. | |
The amendment will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently evaluating these changes to determine whether they have an impact on the presentation of the consolidated financial statements. The Company does not expect these changes to have a material impact. | |
STOCK COMPENSATION | |
In June 2014, the FASB issued ASU 2014-12, an update on stock compensation. The guideline requires performance targets, which affect vesting and can be achieved after the requisite service period, to be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If achievement of the performance target becomes probable before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. | |
The amendments are effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating these changes to determine whether they have an impact on the presentation of the Consolidated Balance Sheets and Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). The Company does not expect these changes to have a material impact on the consolidated financial statements. |
Acquisition_of_Businesses
Acquisition of Businesses | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Acquisition of Businesses | ' | ||||||||
NOTE 3. | |||||||||
ACQUISITION OF BUSINESSES | |||||||||
Acquisition of Laboratorios Indas | |||||||||
On January 2, 2014, Domtar Corporation completed the acquisition of 100% of the outstanding shares of Laboratorios Indas, S.A.U. (“Indas”) a branded incontinence products manufacturer and marketer in Spain. Indas has approximately 440 employees and operates two manufacturing facilities in Spain. The results of Indas’ operations have been included in the Personal Care reportable segment as of January 2, 2014. The purchase price was $546 million (€399 million) in cash, net of cash acquired of $46 million (€34 million). The acquisition was accounted for as a business combination under the acquisition method of accounting, in accordance with the Business Combinations Topic of FASB Accounting Standards Codification. | |||||||||
The total purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on the Company’s estimates of their fair value, which are based on information currently available. The fair value of all elements, including expected useful lives of tangible and intangibles assets are preliminary and remain to be finalized. The Company will complete the valuation of all assets and liabilities within the next six months. | |||||||||
The table below illustrates the preliminary purchase price allocation: | |||||||||
Fair value of net assets acquired at the date of acquisition | |||||||||
Receivables | 101 | ||||||||
Inventory | 28 | ||||||||
Income and other taxes receivable | 3 | ||||||||
Property, plant and equipment | 72 | ||||||||
Intangible assets | |||||||||
Customer relationships | 142 | ||||||||
Trade names | 81 | ||||||||
Catalog rights | 29 | ||||||||
252 | |||||||||
Goodwill (Note 10) | 286 | ||||||||
Deferred income tax assets | 17 | ||||||||
Total assets | 759 | ||||||||
Less: Liabilities | |||||||||
Trade and other payables | 71 | ||||||||
Income and other taxes payable | 3 | ||||||||
Long-term debt (including short-term portion) | 42 | ||||||||
Deferred income tax liabilities | 96 | ||||||||
Other liabilities and deferred credits | 1 | ||||||||
Total liabilities | 213 | ||||||||
Fair value of net assets acquired at the date of acquisition | 546 | ||||||||
Goodwill represents the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized. The goodwill is attributable to the general reputation of the business, the assembled workforce, the expected synergies and the expected future cash flows of the business. Disclosed goodwill is not deductible for tax purposes. | |||||||||
Xerox | |||||||||
On June 1, 2013, Domtar Corporation completed the acquisition of Xerox’s paper and print media product’s assets in the United States and Canada. The transaction includes a broad range of coated and uncoated papers and specialty print media including business forms, carbonless as well as wide-format paper formerly distributed by Xerox. The results of this business are presented in the Pulp and Paper reportable segment. The purchase price was $7 million in cash plus inventory on a dollar for dollar basis. The acquisition was accounted for as a business combination under the acquisition method of accounting, in accordance with the Business Combinations Topic of FASB Accounting Standards Codification. | |||||||||
The total purchase price was allocated to tangible and intangible assets acquired based on the Company’s estimates of their fair value, which was based on information currently available. During the third quarter of 2013, the Company completed the evaluation of all assets and liabilities. | |||||||||
The table below illustrates the purchase price allocation: | |||||||||
Inventory | 4 | ||||||||
Intangible assets | |||||||||
Customer relationships (1) | 1 | ||||||||
License rights (2) | 6 | ||||||||
7 | |||||||||
Total assets | 11 | ||||||||
Fair value of assets acquired at the date of acquisition | 11 | ||||||||
(1) | The useful life of the Customer relationships acquired is 20 years. | ||||||||
(2) | Indefinite useful life. |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities and Fair Value Measurement | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Derivatives and Hedging Activities and Fair Value Measurement | ' | ||||||||||||||||||||||||||||
NOTE 4. | |||||||||||||||||||||||||||||
DERIVATIVES AND HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENT | |||||||||||||||||||||||||||||
INTEREST RATE RISK | |||||||||||||||||||||||||||||
The Company is exposed to interest rate risk arising from fluctuations in interest rates on its cash and cash equivalents, bank indebtedness, bank credit facility and long-term debt. The Company may manage this interest rate exposure through the use of derivative instruments such as interest rate swap contracts. | |||||||||||||||||||||||||||||
CREDIT RISK | |||||||||||||||||||||||||||||
The Company is exposed to credit risk on the accounts receivable from its customers. In order to reduce this risk, the Company reviews new customers’ credit history before granting credit and conducts regular reviews of existing customers’ credit performance. As of June 30, 2014, one of Domtar’s Pulp and Paper segment customers located in the United States represented 10% ($69 million) (2013 – 12% ($73 million)) of the Company’s receivables. | |||||||||||||||||||||||||||||
The Company is also exposed to credit risk in the event of non-performance by counterparties to its financial instruments. The Company minimizes this exposure by entering into contracts with counterparties that are believed to be of high credit quality. Collateral or other security to support financial instruments subject to credit risk is usually not obtained. The credit standing of counterparties is regularly monitored. Additionally, the Company is exposed to credit risk in the event of non-performance by its insurers. The Company minimizes this exposure by doing business only with large reputable insurance companies. | |||||||||||||||||||||||||||||
COST RISK | |||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||
The Company purchases natural gas at the prevailing market price at the time of delivery. In order to manage the cash flow risk associated with purchases of natural gas, the Company may utilize derivative financial instruments or physical purchases to fix the price of forecasted natural gas purchases. The Company formally documents the hedge relationships, including identification of the hedging instruments and the hedged items, the risk management objectives and strategies for undertaking the hedge transactions, and the methodologies used to assess effectiveness and measure ineffectiveness. Current contracts are used to hedge a portion of forecasted purchases over the next 42 months. The effective portion of changes in the fair value of derivative contracts designated as cash flow hedges is recorded net of taxes in Other comprehensive income (loss), and is recognized in Cost of sales in the period in which the hedged transaction occurs. | |||||||||||||||||||||||||||||
The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of June 30, 2014 to hedge forecasted purchases: | |||||||||||||||||||||||||||||
Commodity | Notional contractual quantity | Notional contractual value | Percentage of forecasted | ||||||||||||||||||||||||||
under derivative contracts | under derivative | purchases under derivative | |||||||||||||||||||||||||||
contracts | contracts for | ||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
2014(2) | 2015 | 2016 | 2017 | ||||||||||||||||||||||||||
Natural gas | 20,400,000 | MMBTU | (1) | $ | 85 | 53 | % | 45 | % | 32 | % | 10 | % | ||||||||||||||||
-1 | MMBTU: Millions of British thermal units | ||||||||||||||||||||||||||||
-2 | Represents the remaining six months of 2014 | ||||||||||||||||||||||||||||
The natural gas derivative contracts were fully effective for accounting purposes as of June 30, 2014. The critical terms of the hedging instruments and the hedged items match. As a result, there were no amounts reflected in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) for the three and six months ended June 30, 2014 resulting from hedge ineffectiveness (three and six months ended June 30, 2013 – nil). | |||||||||||||||||||||||||||||
FOREIGN CURRENCY RISK | |||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||
The Company has manufacturing operations in the United States, Canada, Sweden, Spain and China. As a result, it is exposed to movements in foreign currency exchange rates in Canada, Europe and Asia. Moreover, certain assets and liabilities are denominated in currencies other than the U.S. dollar and are exposed to foreign currency movements. As a result, the Company’s earnings are affected by increases or decreases in the value of the Canadian dollar and of European and Asian currencies relative to the U.S. dollar. The Company’s Swedish and Spanish subsidiaries are exposed to movements in foreign currency exchange rates on transactions denominated in a currency other than its Euro functional currency. The Company’s risk management policy allows it to hedge a significant portion of its exposure to fluctuations in foreign currency exchange rates for periods up to three years. The Company may use derivative instruments (currency options and foreign exchange forward contracts) to mitigate its exposure to fluctuations in foreign currency exchange rates or to designate them as hedging instruments in order to hedge the subsidiary’s cash flow risk for purposes of the Consolidated Financial Statements. | |||||||||||||||||||||||||||||
The Company formally documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking the hedge transactions. Foreign exchange derivative contracts designated as cash flow hedges are used to hedge forecasted purchases in Canadian dollars by the Canadian subsidiary over the next 24 months. Foreign exchange derivative option contracts designated as cash flow hedges are used to hedge forecasted sales in British Pound Sterling and forecasted purchases in U.S. dollars by the Swedish and Spanish subsidiaries over the next 12 months. The effective portion of changes in the fair value of derivative contracts designated as cash flow hedges is recorded net of taxes in Other comprehensive income (loss) and is recognized in Cost of sales or in Sales in the period in which the hedged transaction occurs. | |||||||||||||||||||||||||||||
The following table presents the currency values under contracts pursuant to currency derivatives outstanding as of June 30, 2014 to hedge forecasted purchases and sales: | |||||||||||||||||||||||||||||
Contract | Notional contractual value | Percentage of forecasted | |||||||||||||||||||||||||||
net exposures under | |||||||||||||||||||||||||||||
contracts for | |||||||||||||||||||||||||||||
2014 | 2015 | ||||||||||||||||||||||||||||
Currency derivatives purchased | CDN | $ | 490 | 53 | % | 31 | % | ||||||||||||||||||||||
USD | $ | 45 | 68 | % | 36 | % | |||||||||||||||||||||||
GBP | £ | 16 | 85 | % | 40 | % | |||||||||||||||||||||||
Currency derivatives sold | CDN | $ | 490 | 53 | % | 31 | % | ||||||||||||||||||||||
USD | $ | 45 | 68 | % | 36 | % | |||||||||||||||||||||||
GBP | £ | 16 | 85 | % | 40 | % | |||||||||||||||||||||||
The currency options and forwards are fully effective as at June 30, 2014. The critical terms of the hedging instruments and the hedged items match. As a result, there were no amounts reflected in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) for the three and six months ended June 30, 2014 resulting from hedge ineffectiveness (2013 – nil). | |||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT | |||||||||||||||||||||||||||||
The accounting standards for fair value measurements and disclosures, establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is available and significant to the fair value measurement. | |||||||||||||||||||||||||||||
Level 1 | Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||||
Level 2 | Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||||||||||||||
Level 3 | Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. | ||||||||||||||||||||||||||||
The following tables present information about the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (except Long-term debt, see (c) below) at June 30, 2014 and December 31, 2013, in accordance with the accounting standards for fair value measurements and disclosures and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. | |||||||||||||||||||||||||||||
Fair Value of financial instruments at: | June 30, | Quoted prices in | Significant | Significant | Balance sheet classification | ||||||||||||||||||||||||
2014 | active markets for | observable | unobservable | ||||||||||||||||||||||||||
identical assets | inputs | inputs | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||||||
Derivatives designated as cash flow and net investment hedging instruments under the Derivatives and Hedging Topic of FASB ASC: | |||||||||||||||||||||||||||||
Asset derivatives | |||||||||||||||||||||||||||||
Currency derivatives | 10 | — | 10 | — | (a) Prepaid expenses | ||||||||||||||||||||||||
Natural gas swap contracts | 3 | — | 3 | — | (a) Prepaid expenses | ||||||||||||||||||||||||
Natural gas swap contracts | 1 | — | 1 | — | (a) Intangible assets and deferred charges | ||||||||||||||||||||||||
Total Assets | 14 | — | 14 | — | |||||||||||||||||||||||||
Liabilities derivatives | |||||||||||||||||||||||||||||
Currency derivatives | 4 | — | 4 | — | (a) Trade and other payables | ||||||||||||||||||||||||
Natural gas swap contracts | 1 | — | 1 | — | (a) Trade and other payables | ||||||||||||||||||||||||
Total Liabilities | 5 | — | 5 | — | |||||||||||||||||||||||||
Other Instruments: | |||||||||||||||||||||||||||||
Asset backed notes | 7 | — | 6 | 1 | (b) Other assets | ||||||||||||||||||||||||
Long-term debt | 1,611 | 1,611 | — | — | (c) Long-term debt | ||||||||||||||||||||||||
The cumulative gain recorded in Other comprehensive income (loss) relating to natural gas contracts of $3 million at June 30, 2014, will be recognized in Cost of sales upon maturity of the derivatives over the next 42 months at the then prevailing values, which may be different from those at June 30, 2014. | |||||||||||||||||||||||||||||
The cumulative gain recorded in Other comprehensive income (loss) relating to currency options hedging forcasted purchases of $6 million at June 30, 2014, will be recognized in Cost of sales upon maturity of the derivatives over the next 21 months at the then prevailing values, which may be different from those at June 30, 2014. | |||||||||||||||||||||||||||||
Fair Value of financial instruments at: | December 31, | Quoted prices in | Significant | Significant | Balance sheet classification | ||||||||||||||||||||||||
2013 | active markets for | observable | unobservable | ||||||||||||||||||||||||||
identical assets | inputs | inputs | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments under the Derivatives and Hedging Topic of FASB ASC: | |||||||||||||||||||||||||||||
Asset derivatives | |||||||||||||||||||||||||||||
Currency derivatives | 3 | — | 3 | — | (a) Prepaid expenses | ||||||||||||||||||||||||
Natural gas swap contracts | 2 | — | 2 | — | (a) Prepaid expenses | ||||||||||||||||||||||||
Natural gas swap contracts | 1 | — | 1 | — | (a) Intangible assets and deferred charges | ||||||||||||||||||||||||
Total Assets | 6 | — | 6 | — | |||||||||||||||||||||||||
Liabilities derivatives | |||||||||||||||||||||||||||||
Currency derivatives | 10 | — | 10 | — | (a) Trade and other payables | ||||||||||||||||||||||||
Natural gas swap contracts | 1 | — | 1 | — | (a) Other liabilities and deferred credits | ||||||||||||||||||||||||
Total Liabilities | 11 | — | 11 | — | |||||||||||||||||||||||||
Other Instruments: | |||||||||||||||||||||||||||||
Asset backed notes | 6 | — | 5 | 1 | (b) Other assets | ||||||||||||||||||||||||
Long-term debt | 1,620 | 1,620 | — | — | (c) Long-term debt | ||||||||||||||||||||||||
(a) | Fair value of the Company’s derivatives is classified under Level 2 (inputs that are observable; directly or indirectly) as it is measured as follows: | ||||||||||||||||||||||||||||
– | For currency derivatives: Fair value is measured using techniques derived from the Black-Scholes pricing model. Interest rates, forward market rates and volatility are used as inputs for such valuation techniques. | ||||||||||||||||||||||||||||
– | For natural gas contracts: Fair value is measured using the discounted difference between contractual rates and quoted market future rates. | ||||||||||||||||||||||||||||
(b) | Asset Backed Notes (“ABN”) are reported at fair value utilizing Level 2 or Level 3 inputs. Fair value of ABN reported under Level 2 is based on current market quotes. Fair value of ABN reported under Level 3 is based on the value of the collateral investments held in the conduit issuer, reduced by the negative value of credit default derivatives, with an additional discount applied for illiquidity. | ||||||||||||||||||||||||||||
(c) | Fair value of the Company’s long-term debt is measured by comparison to market prices of its debt. In accordance with US GAAP, the Company’s long-term debt is not carried at fair value on the Consolidated Balance Sheets at June 30, 2014 and December 31, 2013. However, fair value disclosure is required. The carrying value of the Company’s long-term debt is $1,417 million and $1,514 million at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||||
Due to their short-term maturity, the carrying amounts of cash and cash equivalents, receivables, bank indebtedness, trade and other payables and income and other taxes approximate their fair values. | |||||||||||||||||||||||||||||
The following table reconciles the beginning and ending balances of ABN measured at fair value on a recurring basis using significant unobservable (Level 3) inputs during the reported periods: | |||||||||||||||||||||||||||||
ASSET BACKED NOTES | |||||||||||||||||||||||||||||
Balance at December 31, 2013 | 1 | ||||||||||||||||||||||||||||
Net unrealized gains included in earnings (a) | — | ||||||||||||||||||||||||||||
Transfer out of Level 3 (b) | — | ||||||||||||||||||||||||||||
Balance at June 30, 2014 | 1 | ||||||||||||||||||||||||||||
(a) | Earnings effect is primarily included in Other operating loss, net in the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). | ||||||||||||||||||||||||||||
(b) | Transfers out of Level 3 are considered to occur at the end of the period. |
Earnings_Loss_Per_Common_Share
Earnings (Loss) Per Common Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings (Loss) Per Common Share | ' | ||||||||||||||||
NOTE 5. | |||||||||||||||||
EARNINGS (LOSS) PER COMMON SHARE | |||||||||||||||||
On April 30, 2014, the Company’s Board of Directors approved a 2-for-1 split of its common stock to be effected through a stock dividend. Shareholders of record on June 10, 2014 were entitled to receive one additional share for every share they owned on that date. | |||||||||||||||||
The following table provides the reconciliation between basic and diluted earnings loss per share: | |||||||||||||||||
For the three | For the six | ||||||||||||||||
months ended | months ended | ||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net earnings (loss) | $ | 40 | $ | (46 | ) | $ | 79 | $ | (1 | ) | |||||||
Weighted average number of common and exchangeable shares outstanding (millions) | 65 | 66.9 | 64.9 | 68.2 | |||||||||||||
Effect of dilutive securities (millions) | 0.1 | — | 0.1 | — | |||||||||||||
Weighted average number of diluted common and exchangeable shares outstanding (millions) | 65.1 | 66.9 | 65 | 68.2 | |||||||||||||
Basic net earnings (loss) per common share (in dollars) | $ | 0.62 | $ | (0.69 | ) | $ | 1.22 | $ | (0.01 | ) | |||||||
Diluted net earnings (loss) per common share (in dollars) | $ | 0.61 | $ | (0.69 | ) | $ | 1.22 | $ | (0.01 | ) | |||||||
The following table provides the securities that could potentially dilute basic earnings per common share in the future, but were not included in the computation of diluted earnings (loss) per common share because to do so would have been anti-dilutive: | |||||||||||||||||
For the three | For the six | ||||||||||||||||
months ended | months ended | ||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Restricted stock units | — | 141,632 | — | 141,632 | |||||||||||||
Performance share units | — | 42,378 | — | 42,378 | |||||||||||||
Options | 366,274 | 100,552 | 337,272 | 145,160 |
Pension_Plans_and_Other_PostRe
Pension Plans and Other Post-Retirement Benefit Plans | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Pension Plans and Other Post-Retirement Benefit Plans | ' | ||||||||||||||||
NOTE 6. | |||||||||||||||||
PENSION PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS | |||||||||||||||||
DEFINED CONTRIBUTION PLANS | |||||||||||||||||
The Company has several defined contribution plans and multi-employer plans. The pension expense under these plans is equal to the Company’s contribution. For the three and six months ended June 30, 2014, the related pension expense was $7 million and $15 million, respectively (2013 - $8 million and $16 million, respectively). | |||||||||||||||||
DEFINED BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS | |||||||||||||||||
The Company sponsors both contributory and non-contributory U.S. and non-U.S. defined benefit pension plans. Non-unionized employees in Canada joining the Company after June 1, 2000 participate in a defined contribution pension plan. Salaried employees in the U.S. joining the Company after January 1, 2008 participate in a defined contribution pension plan. Most unionized employees in the U.S. and all U.S. non-hourly employees that are not grandfathered under the existing defined benefit pension plans, participate in a defined contribution pension plan for future service. The Company also sponsors a number of other post-retirement benefit plans for eligible U.S. and non-U.S. employees; the plans are unfunded and include life insurance programs and medical and dental benefits. The Company also provides supplemental unfunded defined benefit pension plans and supplemental unfunded defined contribution pension plans to certain senior management employees. | |||||||||||||||||
Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: | |||||||||||||||||
For the three months ended | For the six months ended | ||||||||||||||||
June 30, 2014 | June 30, 2014 | ||||||||||||||||
Pension | Other | Pension | Other | ||||||||||||||
plans | post-retirement | plans | post-retirement | ||||||||||||||
benefit plans | benefit plans | ||||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Service cost | 9 | — | 18 | 1 | |||||||||||||
Interest expense | 20 | 2 | 40 | 3 | |||||||||||||
Expected return on plan assets | (26 | ) | — | (52 | ) | — | |||||||||||
Amortization of net actuarial loss | 3 | — | 5 | — | |||||||||||||
Amortization of prior year service costs | — | — | 1 | — | |||||||||||||
Net periodic benefit cost | 6 | 2 | 12 | 4 | |||||||||||||
Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: | |||||||||||||||||
For the three months ended | For the six months ended | ||||||||||||||||
June 30, 2013 | June 30, 2013 | ||||||||||||||||
Pension | Other | Pension | Other | ||||||||||||||
plans | post-retirement | plans | post-retirement | ||||||||||||||
benefit plans | benefit plans | ||||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Service cost | 11 | — | 22 | 1 | |||||||||||||
Interest expense | 18 | 1 | 37 | 2 | |||||||||||||
Expected return on plan assets | (24 | ) | — | (48 | ) | — | |||||||||||
Amortization of net actuarial loss | 7 | 1 | 14 | 1 | |||||||||||||
Settlement loss (a) | 13 | — | 13 | — | |||||||||||||
Amortization of prior year service costs | 1 | — | 1 | — | |||||||||||||
Net periodic benefit cost | 26 | 2 | 39 | 4 | |||||||||||||
(a) | The settlement loss of $13 million in the pension plans for the three and six months ended June 30, 2013 is related to the previously closed Big River and Dryden mills for $6 million and $7 million, respectively (see Note 12 “Closure and restructuring costs and liability and impairment and write-down of property, plant and equipment”). | ||||||||||||||||
The Company contributed $9 million and $19 million for the three and six months ended June 30, 2014, respectively (2013—$7 million and $14 million, respectively) to the pension plans. The Company also contributed $3 million and $3 million for the three and six months ended June 30, 2014, respectively (2013 -$2 million and $3 million, respectively) to the other post-retirement benefit plans. |
Other_Operating_Loss_Net
Other Operating Loss, Net | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||||||
Other Operating Loss, Net | ' | ||||||||||||||||
NOTE 7. | |||||||||||||||||
OTHER OPERATING LOSS, NET | |||||||||||||||||
Other operating loss, net is an aggregate of both recurring and occasional loss or income items and, as a result, can fluctuate from period to period. The Company’s other operating loss, net includes the following: | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Reversal of alternative fuel tax credits (Note 8) | — | — | — | 26 | |||||||||||||
Gain on sale of property, plant and equipment (1) | — | — | — | (10 | ) | ||||||||||||
Environmental provision | — | 1 | — | 2 | |||||||||||||
Foreign exchange loss (gain) | 2 | (1 | ) | (1 | ) | (2 | ) | ||||||||||
Weston litigation (2) | — | 49 | — | 49 | |||||||||||||
Other | — | — | 1 | 2 | |||||||||||||
Other operating loss, net | 2 | 49 | — | 67 | |||||||||||||
(1) | On March 22, 2013, the Company sold the building, remaining equipment and related land of the closed pulp and paper mill in Port Edwards, Wisconsin and recorded a gain on the sale of approximately $10 million. The transaction included specific machinery, equipment, furniture, parts, supplies, tools, real estate, land improvements, and other fixed or tangible assets. The assets were sold “as is” for proceeds of approximately $9 million and the environmental provision of $3 million related to these assets was contractually passed on to the buyer and released from the Company’s liabilities. The net book value of the assets sold was approximately $2 million. | ||||||||||||||||
(2) | On June 24, 2013, the parties agreed to settle the Weston litigation for a payment by Domtar to Weston of $49 million (CDN $50 million). |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
NOTE 8. | |
INCOME TAXES | |
For the second quarter of 2014, the Company’s income tax expense amounted to $13 million, consisting of a current tax expense of $19 million and a deferred tax benefit of $6 million. This compares to an income tax benefit of $5 million in the second quarter of 2013, consisting of a current income tax benefit of $4 million and a deferred income tax benefit of $1 million. The Company made income tax payments, net of refunds, of $20 million during the second quarter of 2014 and the effective tax rate was 25% compared to an effective tax rate of 10% in the second quarter of 2013. The effective tax rate for the second quarter of 2013 was impacted by the George Weston Limited litigation settlement payment made during the quarter of $49 million (CDN $50 million). Approximately $38 million (CDN $39 million) of this payment was non-deductible for income tax purposes. | |
For the first half of 2014, the Company’s income tax expense amounted to $28 million, consisting of a current tax expense of $34 million and a deferred tax benefit of $6 million. This compares to an income tax benefit of $27 million in the first half of 2013, consisting of a current income tax benefit of $27 million and a deferred income tax benefit of nil. The Company made income tax payments, net of refunds, of $19 million during the first half of 2014 and the effective tax rate was 26% compared to an effective tax rate of 100% in the first half of 2013. The effective tax rate for the first half of 2013 was impacted by the conversion of $26 million of Alternative Fuel Tax Credits (“AFTC”) from the 2009 tax year into $55 million of Cellulosic Biofuel Producer Credits (“CBPC”) ($33 million benefit after-tax) as well as a reduction of unrecognized tax benefits of $8 million previously associated with AFTC from 2009 that were converted into CBPC in the first half of 2013. These tax benefits were partially offset by the $49 million (CDN $50 million) litigation settlement payment due to $38 million (CDN $39 million) being non-deductible for income tax purposes. | |
As of June 30, 2014, the Company has gross unrecognized tax benefits and interest of $198 million and related deferred tax assets of $20 million associated with the AFTC claimed on the 2009 tax return. The recognition of these benefits, $178 million net of deferred taxes, would impact the effective tax rate. During the second quarter of 2012, the Internal Revenue Service (“IRS”) began an audit of the Company’s 2009 U.S. income tax return and in the third quarter of 2013 expanded the audit period to include the tax returns for the 2010 and 2011 tax years. The completion of the audit by the IRS or the issuance of authoritative guidance could result in the release of the provision or settlement of the liability in cash of some or all of these previously unrecognized tax benefits. The Company reasonably expects the audit to be settled within the next twelve months which could result in a significant change to the amount of unrecognized tax benefits. However, audit outcomes and the timing of audit settlements are subject to significant uncertainty. |
Inventories
Inventories | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
NOTE 9. | |||||||||
INVENTORIES | |||||||||
The following table presents the components of inventories: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Work in process and finished goods | 406 | 386 | |||||||
Raw materials | 122 | 102 | |||||||
Operating and maintenance supplies | 200 | 197 | |||||||
728 | 685 | ||||||||
Goodwill
Goodwill | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||
Goodwill | ' | ||||
NOTE 10. | |||||
GOODWILL | |||||
The carrying value and any changes in the carrying value of goodwill are as follows: | |||||
June 30, | |||||
2014 | |||||
$ | |||||
Balance at December 31, 2013 | 369 | ||||
Acquisition of Laboratorios Indas | 286 | ||||
Balance at end of period | 655 | ||||
The goodwill at June 30, 2014 is entirely related to the Personal Care segment. (See Note 3 “Acquisition of businesses” for further information on the increase in 2014). |
Intangible_Assets_Net
Intangible Assets, Net | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Intangible Assets, Net | ' | ||||||||||||||||||||||||||||
NOTE 11. | |||||||||||||||||||||||||||||
INTANGIBLE ASSETS, NET | |||||||||||||||||||||||||||||
The following table presents the components of intangible assets, net: | |||||||||||||||||||||||||||||
Estimated useful | June 30, | December 31, | |||||||||||||||||||||||||||
lives (in years) | 2014 | 2013 | |||||||||||||||||||||||||||
Gross carrying | Accumulated | Net | Gross carrying | Accumulated | Net | ||||||||||||||||||||||||
amount | amortization | amount | amortization | ||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Intangible assets subject to amortization | |||||||||||||||||||||||||||||
Water rights | 40 | 8 | (1 | ) | 7 | 8 | (1 | ) | 7 | ||||||||||||||||||||
Customer relationships (1) | 10 - 40 | 399 | (24 | ) | 375 | 256 | (14 | ) | 242 | ||||||||||||||||||||
Technology | 7 - 20 | 8 | (2 | ) | 6 | 8 | (1 | ) | 7 | ||||||||||||||||||||
Non-Compete | 9 | 1 | — | 1 | 1 | — | 1 | ||||||||||||||||||||||
License rights | 12 | 29 | (2 | ) | 27 | 29 | (1 | ) | 28 | ||||||||||||||||||||
445 | (29 | ) | 416 | 302 | (17 | ) | 285 | ||||||||||||||||||||||
Intangible assets not subject to amortization | |||||||||||||||||||||||||||||
Trade names (1) | 197 | — | 197 | 116 | — | 116 | |||||||||||||||||||||||
License rights | 6 | — | 6 | 6 | — | 6 | |||||||||||||||||||||||
Catalog rights (1) | 29 | — | 29 | — | — | — | |||||||||||||||||||||||
Total | 677 | (29 | ) | 648 | 424 | (17 | ) | 407 | |||||||||||||||||||||
Amortization expense related to intangible assets for the three and six months ended June 30, 2014 was $6 million and $11 million, respectively (2013 – $2 million and $4 million, respectively). | |||||||||||||||||||||||||||||
Amortization expense for the next five years related to intangible assets is expected to be as follows: | |||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
Amortization expense related to intangible assets | 21 | 21 | 21 | 21 | 21 | ||||||||||||||||||||||||
(1) | Increase relates to the acquisition of Laboratorios Indas on January 2, 2014. |
Closure_and_Restructuring_Cost
Closure and Restructuring Costs and Liability and Impairment and Write-Down of Property, Plant and Equipment | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||||||||||||||||||||||
Closure and Restructuring Costs and Liability and Impairment and Write-Down of Property, Plant and Equipment | ' | ||||||||||||||||||||||||||||||||
NOTE 12. | |||||||||||||||||||||||||||||||||
CLOSURE AND RESTRUCTURING COSTS AND LIABILITY AND IMPAIRMENT AND WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT | |||||||||||||||||||||||||||||||||
The Company regularly reviews its overall production capacity with the objective of aligning its production capacity with anticipated long-term demand, which in some cases could result in closure or impairment costs being recorded in earnings. | |||||||||||||||||||||||||||||||||
In relation to the withdrawal from one of the Company’s multiemployer pension plans in 2011, the Company recorded an additional charge to earnings of $1 million due to a revision in estimated withdrawal liability during the first quarter of 2013. During the second quarter of 2013, the Company decided to withdraw from another of its multiemployer pension plans and recorded a withdrawal liability and a charge to earnings of $3 million. At June 30, 2014, the current accrual balance is $62 million. While this is the Company’s best estimate of the ultimate cost of the withdrawal from these plans at June 30, 2014, additional withdrawal liabilities may be incurred based on the final fund assessment expected to occur in the third quarter of 2014. Further, the Company remains liable for potential additional withdrawal liabilities to the fund in the event of a mass withdrawal, as defined by statute, occurring anytime within the next two years. | |||||||||||||||||||||||||||||||||
During the second quarter of 2013, the Company also incurred pension settlement losses in the amount of $13 million related to the previously closed Big River sawmill and Dryden paper mill for $6 million and $7 million, respectively. | |||||||||||||||||||||||||||||||||
Ariva U.S. | |||||||||||||||||||||||||||||||||
On July 31, 2013, the Company completed the sale of its Ariva U.S. which had approximately 400 employees in the United States. As a result of this agreement, during the second quarter of 2013, the Company recorded a $5 million impairment of property, plant and equipment at its Ariva U.S. location, in Impairment and write-down of property, plant and equipment on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). | |||||||||||||||||||||||||||||||||
Kamloops, British Columbia pulp facility | |||||||||||||||||||||||||||||||||
On December 13, 2012, the Company announced the permanent shut down of one pulp machine at its Kamloops, British Columbia mill. This decision resulted in a permanent curtailment of Domtar’s annual pulp production by approximately 120,000 air dried metric tons of sawdust softwood pulp and affected approximately 125 employees. | |||||||||||||||||||||||||||||||||
As a result, the Company recognized, under Impairment and write-down of property plant and equipment, $10 million of accelerated depreciation in the first quarter of 2013. The pulp machine ceased production in March 2013. Further, during the first quarter of 2013 the Company reversed $1 million of severance and termination costs. During the second quarter of 2013, the Company reversed an additional $1 million of severance and termination costs, reversed $1 million of inventory obsolescence, and incurred $2 million of other costs. | |||||||||||||||||||||||||||||||||
Other Costs | |||||||||||||||||||||||||||||||||
For the three and six months ended June 30, 2014, the Company also incurred other costs related to previous and ongoing closures which includes nil and $1 million of severance and termination costs, respectively (2013 – $2 million and $2 million, respectively). | |||||||||||||||||||||||||||||||||
The following tables provide the components of closure and restructuring costs by segment: | |||||||||||||||||||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||||||||||
Pulp and Paper | Personal | Corporate | Total | Pulp and Paper | Personal | Corporate | Total | ||||||||||||||||||||||||||
Care | Care | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Severance and termination costs | — | — | — | — | (1 | ) | 2 | — | 1 | ||||||||||||||||||||||||
Inventory obsolescence | — | — | — | — | (1 | ) | — | — | (1 | ) | |||||||||||||||||||||||
Pension settlement and withdrawal liability | — | — | — | — | 10 | — | 6 | 16 | |||||||||||||||||||||||||
Other | — | — | — | — | 2 | — | — | 2 | |||||||||||||||||||||||||
Closure and restructuring costs | — | — | — | — | 10 | 2 | 6 | 18 | |||||||||||||||||||||||||
Six months ended | Six months ended | ||||||||||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||||||||||
Pulp and Paper | Personal | Corporate | Total | Pulp and Paper | Personal | Corporate | Total | ||||||||||||||||||||||||||
Care | Care | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Severance and termination costs | — | 1 | — | 1 | (2 | ) | 2 | — | — | ||||||||||||||||||||||||
Inventory obsolescence | — | — | — | — | (1 | ) | — | — | (1 | ) | |||||||||||||||||||||||
Pension settlement and withdrawal liability | — | — | — | — | 11 | — | 6 | 17 | |||||||||||||||||||||||||
Other | — | — | — | — | 2 | — | — | 2 | |||||||||||||||||||||||||
Closure and restructuring costs | — | 1 | — | 1 | 10 | 2 | 6 | 18 | |||||||||||||||||||||||||
The following table provides the activity in the closure and restructuring liability: | |||||||||||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||||||||||
$ | |||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | 3 | ||||||||||||||||||||||||||||||||
Additions | 1 | ||||||||||||||||||||||||||||||||
Acquisition of business | 1 | ||||||||||||||||||||||||||||||||
Payments | (2 | ) | |||||||||||||||||||||||||||||||
Balance at end of period | 3 | ||||||||||||||||||||||||||||||||
The above provision is comprised of severance and termination costs of $2 million in the Pulp and Paper segment and $1 million in the Personal Care segment. |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Loss by Component | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component | ' | ||||||||||||||||||||
NOTE 13. | |||||||||||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT | |||||||||||||||||||||
The following table presents the changes in Accumulated other comprehensive loss by component(1) for the periods ended June 30, 2014 and 2013: | |||||||||||||||||||||
Net derivative gains | Pension items(2) | Post-retirement | Foreign currency | Total | |||||||||||||||||
(losses) on cash flow | benefit items(2) | items | |||||||||||||||||||
hedges | |||||||||||||||||||||
Balance at December 31, 2013 | — | (210 | ) | (7 | ) | 152 | (65 | ) | |||||||||||||
Natural gas swap contracts | 4 | N/A | N/A | N/A | 4 | ||||||||||||||||
Currency options | 1 | N/A | N/A | N/A | 1 | ||||||||||||||||
Foreign currency items | N/A | N/A | N/A | (12 | ) | (12 | ) | ||||||||||||||
Other comprehensive (loss) income before reclassifications | 5 | — | — | (12 | ) | (7 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 3 | 5 | — | — | 8 | ||||||||||||||||
Net current period other comprehensive income (loss) | 8 | 5 | — | (12 | ) | 1 | |||||||||||||||
Balance at June 30, 2014 | 8 | (205 | ) | (7 | ) | 140 | (64 | ) | |||||||||||||
Balance at December 31, 2012 | 5 | (326 | ) | (15 | ) | 208 | (128 | ) | |||||||||||||
Natural gas swap contracts | (1 | ) | N/A | N/A | N/A | (1 | ) | ||||||||||||||
Currency options | (7 | ) | N/A | N/A | N/A | (7 | ) | ||||||||||||||
Net investment hedge | — | N/A | N/A | N/A | — | ||||||||||||||||
Foreign currency items | N/A | N/A | N/A | (60 | ) | (60 | ) | ||||||||||||||
Other comprehensive (loss) income before reclassifications | (8 | ) | — | — | (60 | ) | (68 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 1 | 21 | — | — | 22 | ||||||||||||||||
Net current period other comprehensive (loss) income | (7 | ) | 21 | — | (60 | ) | (46 | ) | |||||||||||||
Balance at June 30, 2013 | (2 | ) | (305 | ) | (15 | ) | 148 | (174 | ) | ||||||||||||
-1 | All amounts are after tax. Amount in parenthesis indicate losses. | ||||||||||||||||||||
-2 | The accrued benefit obligation is actuarially determined on an annual basis as of December 31. | ||||||||||||||||||||
The following tables present reclassifications out of Accumulated other comprehensive loss: | |||||||||||||||||||||
Details of Accumulated other | Amount reclassified from | Affected line item in the | |||||||||||||||||||
comprehensive loss components | Accumulated other | Consolidated Statements of Earnings (Loss) | |||||||||||||||||||
comprehensive loss | and Comprehensive Income (Loss) | ||||||||||||||||||||
For the three months ended | |||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||
Net derivative gains (losses) on cash flow hedges | |||||||||||||||||||||
Natural gas swap contracts | (1 | ) | — | Cost of Sales | |||||||||||||||||
Currency options | 3 | — | Cost of Sales | ||||||||||||||||||
Total before tax | 2 | — | |||||||||||||||||||
Tax benefit | (1 | ) | — | Income tax benefit | |||||||||||||||||
Net of tax | 1 | — | |||||||||||||||||||
Amortization of defined benefit pension items | |||||||||||||||||||||
Amortization of net actuarial loss and prior year service cost | 3 | 22 | (a) | ||||||||||||||||||
Tax benefit | — | (6 | ) | Income tax benefit | |||||||||||||||||
Net of tax | 3 | 16 | |||||||||||||||||||
Details of Accumulated other | Amount reclassified from | Affected line item in the | |||||||||||||||||||
comprehensive loss components | Accumulated other | Consolidated Statements of Earnings (Loss) | |||||||||||||||||||
comprehensive loss | and Comprehensive Income (Loss) | ||||||||||||||||||||
For the six months ended | |||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||
Net derivative gains (losses) on cash flow hedges | |||||||||||||||||||||
Natural gas swap contracts | (3 | ) | 2 | Cost of Sales | |||||||||||||||||
Currency options | 9 | — | Cost of Sales | ||||||||||||||||||
Total before tax | 6 | 2 | |||||||||||||||||||
Tax benefit | (3 | ) | (1 | ) | Income tax benefit | ||||||||||||||||
Net of tax | 3 | 1 | |||||||||||||||||||
Amortization of defined benefit pension items | |||||||||||||||||||||
Amortization of net actuarial loss and prior year service cost | 6 | 29 | (a) | ||||||||||||||||||
Tax benefit | (1 | ) | (8 | ) | Income tax benefit | ||||||||||||||||
Net of tax | 5 | 21 | |||||||||||||||||||
(a) | These amounts are included in the computation of net periodic benefit cost. Refer to Note 6 “Pension plans and other post-retirement benefit plans” for additional details. |
Shareholders_Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Shareholders' Equity | ' |
NOTE 14. | |
SHAREHOLDERS’ EQUITY | |
On February 18, 2014, the Company’s Board of Directors approved a quarterly dividend of $0.275 per share to be paid to holders of the Company’s common stock, as well as holders of exchangeable shares of Domtar (Canada) Paper Inc. Total dividends of approximately $18 million were paid on April 15, 2014 to shareholders of record on March 14, 2014. | |
On April 30, 2014, the Company’s Board of Directors approved a 2-for-1 split of its common stock to be effected through a stock dividend. Shareholders of record on June 10, 2014 received one additional share for every share they owned on that date. As a result of the stock split, total shares of the Company’s common stock outstanding increased from approximately 32.5 million to 65 million. | |
In addition, the Company’s Board of Directors approved an increase in the quarterly dividend on its common stock on a post-split basis, from $0.275 to $0.375 per share. This is equivalent to, on a pre-split basis, an increase of $0.20 per share (36%) per quarter. Total dividends of approximately $24 million were paid on July 15, 2014 to shareholders of record on July 2, 2014. | |
On July 30, 2014, the Company’s Board of Directors approved a quarterly dividend of $0.375 per share to be paid to holders of the Company’s common stock. This dividend is to be paid on October 15, 2014, to shareholders of record on October 2, 2014. | |
STOCK REPURCHASE PROGRAM | |
In 2010, the Company’s Board of Directors authorized a stock repurchase program (“the Program”) of up to $1 billion of Domtar Corporation’s common stock. Under the Program, the Company is authorized to repurchase from time to time shares of its outstanding common stock on the open market or in privately negotiated transactions in the United States. The timing and amount of stock repurchases will depend on a variety of factors, including the market conditions as well as corporate and regulatory considerations. The Program may be suspended, modified or discontinued at any time and the Company has no obligation to repurchase any amount of its common stock under the Program. The Program has no set expiration date. The Company repurchases its common stock, from time to time, in part to reduce the dilutive effects of stock options, awards, and to improve shareholders’ returns. | |
The Company makes open market purchases of its common stock using general corporate funds. Additionally, the Company enteres into structured stock repurchase agreements with large financial institutions using general corporate funds in order to lower the average cost to acquire shares. The agreements requires the Company to make up-front payments to the counterparty financial institutions which results in either the receipt of stock at the beginning of the term of the agreements followed by a share adjustment at the maturity of the agreements, or the receipt of either stock or cash at the maturity of the agreements, depending upon the price of the stock. | |
During the first half of 2014, the Company did not repurchase any shares under the Program. | |
During the first half of 2013, the Company repurchased 3,952,952 shares at an average price of $37.13 for a total cost of $147 million. | |
Since the inception of the Program, the Company repurchased 22,341,012 shares at an average price of $39.24 for a total cost of $877 million. All shares repurchased are recorded as Treasury stock on the Consolidated Balance Sheets under the par value method at $0.01 per share. | |
Domtar Canada Paper Inc. Exchangeable Shares | |
Upon the consummation of a series of transactions whereby the Fine Paper Business of Weyerhaeuser Company was transferred to the Company and it acquired Domtar Inc. on March 7, 2007 (the “Transaction”), Domtar Inc. shareholders had the option to receive either common stock of the Company or shares of Domtar (Canada) Paper Inc. that were exchangeable for common stock of the Company. The exchangeable shares of Domtar (Canada) Paper Inc. were intended to be substantially the economic equivalent to shares of the Company’s common stock. These shareholders could exchange the exchangeable shares for shares of Domtar Corporation common stock on a one-for-one basis at any time. | |
On June 2, 2014 (the “Redemption Date”) Domtar (Canada) Paper Inc., a subsidiary of Domtar Corporation, redeemed all of its outstanding exchangeable shares from the holders thereof. On the Redemption Date, holders of exchangeable shares received, in exchange for each exchangeable share, one share of common stock of Domtar Corporation (plus cash in the amount of all declared and unpaid dividends, if any, provided that the record date for the payment of such dividends was prior to the Redemption Date). | |
As a result of the redemption of exchangeable shares, the Company reclassified $32 million from Exchangeable shares to Additional paid-in capital. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
NOTE 15. | |||||
COMMITMENTS AND CONTINGENCIES | |||||
ENVIRONMENT | |||||
The Company is subject to environmental laws and regulations enacted by federal, provincial, state and local authorities. | |||||
An action was commenced by Seaspan International Ltd. (“Seaspan”) in the Supreme Court of British Columbia, on March 31, 1999 against the Company and others with respect to alleged contamination of Seaspan’s site bordering Burrard Inlet in North Vancouver, British Columbia, including contamination of sediments in Burrard Inlet, due to the presence of creosote and heavy metals. Beyond the filing of preliminary pleadings, no steps have been taken by the parties in this action. On February 16, 2010, the government of British Columbia issued a Remediation Order to Seaspan and the Company (“responsible persons”) in order to define and implement an action plan to address soil, sediment and groundwater issues. This Order was appealed to the Environmental Appeal Board (“Board”) on March 17, 2010 but there is no suspension in the execution of this Order unless the Board orders otherwise. The relevant government authorities selected a remediation approach on July 15, 2011, and on January 8, 2013, the same authorities decided that each responsible persons’ implementation plan is satisfactory and that the responsible persons should decide which plan is to be used. Most of the remaining appeals that were to be heard before the Board were abandoned by the parties during the course of the Board proceedings which were held in the fall of 2013. Seaspan and Domtar have selected a remedial plan and have applied to the Vancouver Fraser Port Authority for permitting approval. The Company has recorded an environmental reserve to address its estimated exposure. The possible loss in excess of the reserve is not considered to be material for this matter. | |||||
The following table reflects changes in the reserve for environmental remediation and asset retirement obligations: | |||||
June 30, 2014 | |||||
$ | |||||
Balance at beginning of period | 67 | ||||
Additions | 1 | ||||
Environmental spending | (4 | ) | |||
Balance at end of period | 64 | ||||
The Company is also a party to various proceedings relating to the cleanup of hazardous waste sites under the Comprehensive Environmental Response Compensation and Liability Act, commonly known as “Superfund,” and similar state laws. The EPA and/or various state agencies have notified the Company that it may be a potentially responsible party with respect to other hazardous waste sites as to which no proceedings have been instituted against the Company. The Company continues to take remedial action under its Care and Control Program at its former wood preserving sites, and at a number of operating sites due to possible soil, sediment or groundwater contamination. The investigation and remediation process is lengthy and subject to the uncertainties of changes in legal requirements, technological developments and, if and when applicable, the allocation of liability among potentially responsible parties. | |||||
Climate change regulation | |||||
In response to the Kyoto Protocol, which calls for reductions of certain emissions that may contribute to increases in atmospheric greenhouse gas (“GHG”) concentrations, various international, national and local laws have been proposed or implemented focusing on reducing GHG emissions. These actual or proposed laws do or may apply in the jurisdictions where the Company currently has, or may have in the future, manufacturing facilities or investments. | |||||
In the United States, Congress has considered legislation to reduce emissions of GHGs. Although the legislation has not passed, it appears that the federal government will continue to consider methods to reduce GHG emissions from public utilities and certain other emitters. The U.S. Environmental Protection Agency (“EPA”) has adopted and implemented GHG permitting requirements for certain new sources and modifications of existing industrial facilities and has proposed GHG performance standards for newly constructed, reconstructed and modified electric utilities under the existing Clean Air Act. The EPA has also relied on the existing Clean Air Act to propose a “Clean Power Plan” that would establish emission guidelines for existing electric utilities and require states to develop plans for reducing GHG emissions by making significant changes to the energy resources utilized within the state. The EPA is also developing a biogenic carbon accounting framework to account for carbon dioxide emissions from biomass fuels for Clean Air Act permitting purposes. The EPA also references this framework in the proposals addressing GHG performance standards for the electric utilities. Furthermore, several states are already regulating GHG emissions from public utilities and certain other significant emitters, primarily through regional GHG cap-and-trade programs or renewable energy requirements. | |||||
The U.S. Supreme Court held on June 23, 2014 that the EPA had exceeded its statutory authority in establishing its GHG permitting program. Specifically, the Court determined that the EPA could not impose GHG permitting requirements on a source unless that source had already triggered permitting requirements for other non-GHG pollutants. However, for sources already subject to permitting, the Court held that the Clean Air Act did not preclude the EPA from requiring those sources to install “best available control technology” for GHGs. | |||||
Passage of GHG legislation by Congress or individual states, or the adoption of regulations by the EPA or analogous state agencies, that restrict emissions of GHGs in areas in which the Company conducts business could have a variety of impacts upon the Company, including requiring it to implement GHG reduction programs or to pay taxes or other fees with respect to its GHG emissions. This, in turn, will increase the Company’s operating costs and capital spending. The Company does not expect to be disproportionately affected by these measures compared with other pulp and paper producers in the United States. | |||||
The Government of Canada has committed to reducing greenhouse gases by 17 percent from 2005 levels by 2020. A sector by sector approach is being used to set performance standards to reduce greenhouse gases. On September 5, 2012 final regulations were published for the coal-fired electrical generators which are scheduled to become effective July 1, 2015. Performance standards for industrial sectors will also be developed. The pulp and paper sector is currently undergoing review. The Company does not expect the performance standards to be disproportionately affected by these future measures compared with other pulp and paper producers in Canada. | |||||
The province of Quebec initiated a GHG cap-and-trade system on January 1, 2012. Reduction targets for Quebec have been promulgated and were effective January 1, 2013. The Company does not expect the cost of compliance will have a material impact on the Company’s financial position, results of operations or cash flows. British Columbia imposed a carbon tax in 2008, which applies to the purchase of fossil fuels within the province. There are currently no other federal or provincial statutory or regulatory obligations that affect the emission of GHGs for the Company’s pulp and paper operations elsewhere in Canada. The Province of Ontario is reviewing a potential regulatory program for GHG emission reductions that may include a cap-and-trade component. | |||||
While it is likely that there will be increased regulation relating to GHG emissions in the future, at this time it is not possible to estimate either a timetable for the promulgation or implementation of any new regulations or the Company’s cost of compliance to said regulations. The impact could, however, be material. | |||||
Industrial Boiler Maximum Achievable Control Technology Standard (“MACT”) | |||||
On December 2, 2011, the EPA proposed a new set of standards related to emissions from boilers and process heaters included in some of the Company’s manufacturing processes. These standards are generally referred to as Boiler MACT and seek to require reductions in the emission of certain hazardous air pollutants or surrogates of hazardous air pollutants. The EPA announced the final rule on December 20, 2012 and it was subsequently published in the Federal Register on January 31, 2013 for major sources. The Company is developing plans to bring facilities affected by the Boiler MACT rule into compliance by the January 2016 regulatory deadline for major sources. The Company expects that the capital cost required to comply with the Boiler MACT rules is between $20 million and $30 million. The Company is currently assessing the associated increase in operating costs as well as alternate compliance strategies. | |||||
The EPA has agreed to reconsider a limited number of issues in the most recent Boiler MACT rule, and elements of the EPA’s rule have been legally challenged. Since the consequences of these activities cannot be predicted, adjustments to compliance plans may be needed to accommodate any changes to the final rule. | |||||
CONTINGENCIES | |||||
In the normal course of operations, the Company becomes involved in various legal actions mostly related to contract disputes, patent infringements, environmental and product warranty claims, and labor issues. While the final outcome with respect to actions outstanding or pending at June 30, 2014, cannot be predicted with certainty, it is management’s opinion that their resolution will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. | |||||
INDEMNIFICATIONS | |||||
In the normal course of business, the Company offers indemnifications relating to the sale of its businesses and real estate. In general, these indemnifications may relate to claims from past business operations, the failure to abide by covenants and the breach of representations and warranties included in the sales agreements. Typically, such representations and warranties relate to taxation, environmental, product and employee matters. The terms of these indemnification agreements are generally for an unlimited period of time. At June 30, 2014, the Company is unable to estimate the potential maximum liabilities for these types of indemnification guarantees as the amounts are contingent upon the outcome of future events, the nature and likelihood of which cannot be reasonably estimated at this time. Accordingly, no provision has been recorded. These indemnifications have not yielded a significant expense in the past. | |||||
Pension Plans | |||||
The Company has indemnified and held harmless the trustees of its pension funds, and the respective officers, directors, employees and agents of such trustees, from any and all costs and expenses arising out of the performance of their obligations under the relevant trust agreements, including in respect of their reliance on authorized instructions from the Company or for failing to act in the absence of authorized instructions. These indemnifications survive the termination of such agreements. At June 30, 2014 the Company has not recorded a liability associated with these indemnifications, as it does not expect to make any payments pertaining to these indemnifications. |
Segment_Disclosures
Segment Disclosures | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Disclosures | ' | ||||||||||||||||
NOTE 16. | |||||||||||||||||
SEGMENT DISCLOSURES | |||||||||||||||||
The Company operates in the two reportable segments described below. Each reportable segment offers different products and services and requires different manufacturing processes, technology and/or marketing strategies. The following summary briefly describes the operations included in each of the Company’s reportable segments: | |||||||||||||||||
• | Pulp and Paper Segment – comprises the design, manufacturing, marketing and distribution of communication, specialty and packaging papers, as well as softwood, fluff and hardwood market pulp. | ||||||||||||||||
• | Personal Care Segment – consists of the manufacturing, marketing and distribution of adult incontinence products, absorbent hygiene products and infant diapers. | ||||||||||||||||
An analysis and reconciliation of the Company’s reportable segment information to the respective information in the financial statements is as follows: | |||||||||||||||||
For the three months ended | For the six months ended | ||||||||||||||||
SEGMENT DATA | June 30, | June 30, | June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Sales | |||||||||||||||||
Pulp and Paper | 1,160 | 1,208 | 2,328 | 2,446 | |||||||||||||
Personal Care | 234 | 108 | 467 | 219 | |||||||||||||
Total for reportable segments | 1,394 | 1,316 | 2,795 | 2,665 | |||||||||||||
Intersegment sales - Pulp and Paper | (9 | ) | (4 | ) | (16 | ) | (8 | ) | |||||||||
Consolidated sales | 1,385 | 1,312 | 2,779 | 2,657 | |||||||||||||
Depreciation and amortization and impairment and write-down of property, plant and equipment | |||||||||||||||||
Pulp and Paper | 79 | 87 | 162 | 176 | |||||||||||||
Personal Care | 17 | 6 | 33 | 12 | |||||||||||||
Total for reportable segments | 96 | 93 | 195 | 188 | |||||||||||||
Impairment and write-down of property, plant and equipment - Pulp and paper | — | 5 | — | 15 | |||||||||||||
Consolidated depreciation and amortization and impairment and write-down of property, plant and equipment | 96 | 98 | 195 | 203 | |||||||||||||
Operating income (loss) | |||||||||||||||||
Pulp and Paper | 69 | 16 | 138 | 54 | |||||||||||||
Personal Care | 14 | 10 | 29 | 23 | |||||||||||||
Corporate | (4 | ) | (56 | ) | (9 | ) | (58 | ) | |||||||||
Consolidated operating income (loss) | 79 | (30 | ) | 158 | 19 | ||||||||||||
Interest expense, net | 26 | 21 | 51 | 46 | |||||||||||||
Earnings (loss) before income taxes and equity loss | 53 | (51 | ) | 107 | (27 | ) | |||||||||||
Income tax expense (benefit) | 13 | (5 | ) | 28 | (27 | ) | |||||||||||
Equity loss, net of taxes | — | — | — | 1 | |||||||||||||
Net earnings (loss) | 40 | (46 | ) | 79 | (1 | ) |
Supplemental_Guarantor_Financi
Supplemental Guarantor Financial Information | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||||||||||||||
Supplemental Guarantor Financial Information | ' | ||||||||||||||||||||
NOTE 17. | |||||||||||||||||||||
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION | |||||||||||||||||||||
The following information is presented as required under Rule 3-10 of Regulation S-X, in connection with the Company’s issuance of debt securities that are fully and unconditionally guaranteed by Domtar Paper Company, LLC, a 100% owned subsidiary of the Company and the successor to the Weyerhaeuser Fine Paper Business U.S. Operations, Domtar Industries LLC (and subsidiaries, excluding Domtar Funding LLC), Ariva Distribution Inc., Domtar Delaware Investments Inc., Domtar Delaware Holdings, LLC, Domtar A.W. LLC (and subsidiary), Domtar AI Inc., Attends Healthcare Inc., and EAM Corporation, all 100% owned subsidiaries of the Company (“Guarantor Subsidiaries”), on a joint and several basis. The Guaranteed Debt will not be guaranteed by certain of Domtar’s own 100% owned subsidiaries; including Domtar Delaware Holdings Inc. and its foreign subsidiaries, including Attends Healthcare Limited, Domtar Inc. and Laboratorios Indas. S.A.U., (collectively the “Non-Guarantor Subsidiaries”). The subsidiary’s guarantee may be released in certain customary circumstances, such as if the subsidiary is sold or sells all of its assets, if the subsidiary’s guarantee of the Credit Agreement is terminated or released and if the requirements for legal defeasance to discharge the indenture have been satisfied. | |||||||||||||||||||||
The following supplemental condensed consolidating financial information sets forth, on an unconsolidated basis, the Balance Sheets at June 30, 2014 and December 31, 2013 and the Statements of Earnings (Loss) and Comprehensive Income (Loss) and Cash Flows for the three and six months ended June 30, 2014 and June 30, 2013, and the Statements of Cash Flows for the six months ended June 30, 2014 and June 30, 2013 for Domtar Corporation (the “Parent”), and on a combined basis for the Guarantor Subsidiaries and, on a combined basis, the Non-Guarantor Subsidiaries. The supplemental condensed consolidating financial information reflects the investments of the Parent in the Guarantor Subsidiaries, as well as the investments of the Guarantor Subsidiaries in the Non-Guarantor Subsidiaries, using the equity method. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS AND | For the three months ended June 30, 2014 | ||||||||||||||||||||
COMPREHENSIVE INCOME | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 1,091 | 570 | (276 | ) | 1,385 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 916 | 468 | (276 | ) | 1,108 | |||||||||||||||
Depreciation and amortization | — | 65 | 31 | — | 96 | ||||||||||||||||
Selling, general and administrative | 5 | 42 | 53 | — | 100 | ||||||||||||||||
Other operating loss, net | — | 2 | — | — | 2 | ||||||||||||||||
5 | 1,025 | 552 | (276 | ) | 1,306 | ||||||||||||||||
Operating (loss) income | (5 | ) | 66 | 18 | — | 79 | |||||||||||||||
Interest expense (income), net | 25 | 7 | (6 | ) | — | 26 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (30 | ) | 59 | 24 | — | 53 | |||||||||||||||
Income tax (benefit) expense | (7 | ) | 15 | 5 | — | 13 | |||||||||||||||
Equity loss, net of taxes | — | — | — | — | — | ||||||||||||||||
Share in earnings of equity accounted investees | 63 | 19 | — | (82 | ) | — | |||||||||||||||
Net earnings | 40 | 63 | 19 | (82 | ) | 40 | |||||||||||||||
Other comprehensive income | — | 9 | 27 | — | 36 | ||||||||||||||||
Comprehensive income | 40 | 72 | 46 | (82 | ) | 76 | |||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS AND | For the six months ended June 30, 2014 | ||||||||||||||||||||
COMPREHENSIVE INCOME | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 2,200 | 1,124 | (545 | ) | 2,779 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 1,849 | 907 | (545 | ) | 2,211 | |||||||||||||||
Depreciation and amortization | — | 133 | 62 | — | 195 | ||||||||||||||||
Selling, general and administrative | 18 | 115 | 81 | — | 214 | ||||||||||||||||
Closure and restructuring costs | — | 1 | — | — | 1 | ||||||||||||||||
Other operating (loss) income, net | — | 1 | (1 | ) | — | — | |||||||||||||||
18 | 2,099 | 1,049 | (545 | ) | 2,621 | ||||||||||||||||
Operating (loss) income | (18 | ) | 101 | 75 | — | 158 | |||||||||||||||
Interest expense (income), net | 50 | 12 | (11 | ) | — | 51 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (68 | ) | 89 | 86 | — | 107 | |||||||||||||||
Income tax (benefit) expense | (17 | ) | 23 | 22 | — | 28 | |||||||||||||||
Equity loss, net of taxes | — | — | — | — | — | ||||||||||||||||
Share in earnings of equity accounted investees | 130 | 64 | — | (194 | ) | — | |||||||||||||||
Net earnings | 79 | 130 | 64 | (194 | ) | 79 | |||||||||||||||
Other comprehensive income (loss) | 1 | 8 | (8 | ) | — | 1 | |||||||||||||||
Comprehensive income | 80 | 138 | 56 | (194 | ) | 80 | |||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF LOSS AND | For the three months ended June 30, 2013 | ||||||||||||||||||||
COMPREHENSIVE LOSS | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 1,081 | 492 | (261 | ) | 1,312 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 909 | 434 | (261 | ) | 1,082 | |||||||||||||||
Depreciation and amortization | — | 67 | 26 | — | 93 | ||||||||||||||||
Selling, general and administrative | 7 | 62 | 26 | — | 95 | ||||||||||||||||
Impairment and write-down of property, plant and equipment | — | 5 | — | — | 5 | ||||||||||||||||
Closure and restructuring costs | — | 5 | 13 | — | 18 | ||||||||||||||||
Other operating loss, net | — | 2 | 47 | — | 49 | ||||||||||||||||
7 | 1,050 | 546 | (261 | ) | 1,342 | ||||||||||||||||
Operating (loss) income | (7 | ) | 31 | (54 | ) | — | (30 | ) | |||||||||||||
Interest expense (income), net | 22 | 5 | (6 | ) | — | 21 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (29 | ) | 26 | (48 | ) | — | (51 | ) | |||||||||||||
Income tax (benefit) expense | (7 | ) | 8 | (6 | ) | — | (5 | ) | |||||||||||||
Equity loss, net of taxes | — | — | — | — | — | ||||||||||||||||
Share in earnings of equity accounted investees | (24 | ) | (42 | ) | — | 66 | — | ||||||||||||||
Net loss | (46 | ) | (24 | ) | (42 | ) | 66 | (46 | ) | ||||||||||||
Other comprehensive loss | (3 | ) | (4 | ) | (19 | ) | — | (26 | ) | ||||||||||||
Comprehensive loss | (49 | ) | (28 | ) | (61 | ) | 66 | (72 | ) | ||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF (LOSS) EARNINGS AND | For the six months ended June 30, 2013 | ||||||||||||||||||||
COMPREHENSIVE (LOSS) INCOME | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 2,188 | 984 | (515 | ) | 2,657 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 1,851 | 828 | (515 | ) | 2,164 | |||||||||||||||
Depreciation and amortization | — | 135 | 53 | — | 188 | ||||||||||||||||
Selling, general and administrative | 13 | 135 | 38 | — | 186 | ||||||||||||||||
Impairment and write-down of property, plant and equipment | — | 5 | 10 | — | 15 | ||||||||||||||||
Closure and restructuring costs | — | 6 | 12 | — | 18 | ||||||||||||||||
Other operating loss, net | — | 20 | 47 | — | 67 | ||||||||||||||||
13 | 2,152 | 988 | (515 | ) | 2,638 | ||||||||||||||||
Operating (loss) income | (13 | ) | 36 | (4 | ) | — | 19 | ||||||||||||||
Interest expense (income), net | 49 | 9 | (12 | ) | — | 46 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (62 | ) | 27 | 8 | — | (27 | ) | ||||||||||||||
Income tax (benefit) expense | (16 | ) | (25 | ) | 14 | — | (27 | ) | |||||||||||||
Equity loss, net of taxes | — | — | 1 | — | 1 | ||||||||||||||||
Share in earnings of equity accounted investees | 45 | (7 | ) | — | (38 | ) | — | ||||||||||||||
Net (loss) earnings | (1 | ) | 45 | (7 | ) | (38 | ) | (1 | ) | ||||||||||||
Other comprehensive income (loss) | 1 | (4 | ) | (43 | ) | — | (46 | ) | |||||||||||||
Comprehensive income (loss) | — | 41 | (50 | ) | (38 | ) | (47 | ) | |||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | June 30, 2014 | ||||||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Assets | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 6 | 6 | 73 | — | 85 | ||||||||||||||||
Receivables | — | 348 | 327 | — | 675 | ||||||||||||||||
Inventories | — | 503 | 225 | — | 728 | ||||||||||||||||
Prepaid expenses | 14 | 10 | 13 | — | 37 | ||||||||||||||||
Income and other taxes receivable | 85 | — | 12 | (43 | ) | 54 | |||||||||||||||
Intercompany accounts | 773 | 4,297 | 17 | (5,087 | ) | — | |||||||||||||||
Deferred income taxes | — | 25 | 21 | — | 46 | ||||||||||||||||
Total current assets | 878 | 5,189 | 688 | (5,130 | ) | 1,625 | |||||||||||||||
Property, plant and equipment, at cost | — | 6,036 | 2,996 | — | 9,032 | ||||||||||||||||
Accumulated depreciation | — | (3,863 | ) | (1,903 | ) | — | (5,766 | ) | |||||||||||||
Net property, plant and equipment | — | 2,173 | 1,093 | — | 3,266 | ||||||||||||||||
Goodwill | — | 296 | 359 | — | 655 | ||||||||||||||||
Intangible assets, net of amortization | — | 268 | 380 | — | 648 | ||||||||||||||||
Investments in affiliates | 7,824 | 2,192 | — | (10,016 | ) | — | |||||||||||||||
Intercompany advances | 6 | 79 | 328 | (413 | ) | — | |||||||||||||||
Other assets | 26 | 11 | 152 | (44 | ) | 145 | |||||||||||||||
Total assets | 8,734 | 10,208 | 3,000 | (15,603 | ) | 6,339 | |||||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Bank indebtedness | — | 6 | 9 | — | 15 | ||||||||||||||||
Trade and other payables | 58 | 380 | 264 | — | 702 | ||||||||||||||||
Intercompany accounts | 4,295 | 697 | 95 | (5,087 | ) | — | |||||||||||||||
Income and other taxes payable | 3 | 54 | 18 | (43 | ) | 32 | |||||||||||||||
Long-term debt due within one year | — | 2 | 5 | — | 7 | ||||||||||||||||
Total current liabilities | 4,356 | 1,139 | 391 | (5,130 | ) | 756 | |||||||||||||||
Long-term debt | 1,354 | 3 | 53 | — | 1,410 | ||||||||||||||||
Intercompany long-term loans | 185 | 228 | — | (413 | ) | — | |||||||||||||||
Deferred income taxes and other | — | 874 | 168 | (44 | ) | 998 | |||||||||||||||
Other liabilities and deferred credits | 13 | 140 | 196 | — | 349 | ||||||||||||||||
Shareholders’ equity | 2,826 | 7,824 | 2,192 | (10,016 | ) | 2,826 | |||||||||||||||
Total liabilities and shareholders’ equity | 8,734 | 10,208 | 3,000 | (15,603 | ) | 6,339 | |||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | December 31, 2013 | ||||||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Assets | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 439 | 22 | 194 | — | 655 | ||||||||||||||||
Receivables | — | 402 | 199 | — | 601 | ||||||||||||||||
Inventories | — | 480 | 205 | — | 685 | ||||||||||||||||
Prepaid expenses | 7 | 7 | 9 | — | 23 | ||||||||||||||||
Income and other taxes receivable | 47 | 1 | 13 | — | 61 | ||||||||||||||||
Intercompany accounts | 590 | 3,951 | 28 | (4,569 | ) | — | |||||||||||||||
Deferred income taxes | — | 31 | 21 | — | 52 | ||||||||||||||||
Total current assets | 1,083 | 4,894 | 669 | (4,569 | ) | 2,077 | |||||||||||||||
Property, plant and equipment, at cost | — | 5,968 | 2,915 | — | 8,883 | ||||||||||||||||
Accumulated depreciation | — | (3,734 | ) | (1,860 | ) | — | (5,594 | ) | |||||||||||||
Net property, plant and equipment | — | 2,234 | 1,055 | — | 3,289 | ||||||||||||||||
Goodwill | — | 296 | 73 | — | 369 | ||||||||||||||||
Intangible assets, net of amortization | — | 273 | 134 | — | 407 | ||||||||||||||||
Investments in affiliates | 7,650 | 2,097 | — | (9,747 | ) | — | |||||||||||||||
Intercompany long-term advances | 6 | 79 | 654 | (739 | ) | — | |||||||||||||||
Other assets | 28 | 12 | 112 | (16 | ) | 136 | |||||||||||||||
Total assets | 8,767 | 9,885 | 2,697 | (15,071 | ) | 6,278 | |||||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Bank indebtedness | 1 | 13 | 1 | — | 15 | ||||||||||||||||
Trade and other payables | 49 | 422 | 202 | — | 673 | ||||||||||||||||
Intercompany accounts | 3,941 | 537 | 91 | (4,569 | ) | — | |||||||||||||||
Income and other taxes payable | — | 12 | 5 | — | 17 | ||||||||||||||||
Long-term debt due within one year | — | 3 | 1 | — | 4 | ||||||||||||||||
Total current liabilities | 3,991 | 987 | 300 | (4,569 | ) | 709 | |||||||||||||||
Long-term debt | 1,494 | 4 | 12 | — | 1,510 | ||||||||||||||||
Intercompany long-term loans | 527 | 212 | — | (739 | ) | — | |||||||||||||||
Deferred income taxes and other | — | 891 | 44 | (12 | ) | 923 | |||||||||||||||
Other liabilities and deferred credits | 17 | 141 | 200 | (4 | ) | 354 | |||||||||||||||
Shareholders’ equity | 2,738 | 7,650 | 2,141 | (9,747 | ) | 2,782 | |||||||||||||||
Total liabilities and shareholders’ equity | 8,767 | 9,885 | 2,697 | (15,071 | ) | 6,278 | |||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | For the six months ended June 30, 2014 | ||||||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Operating activities | |||||||||||||||||||||
Net earnings | 79 | 130 | 64 | (194 | ) | 79 | |||||||||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 19 | (113 | ) | 66 | 194 | 166 | |||||||||||||||
Cash flows provided from operating activities | 98 | 17 | 130 | — | 245 | ||||||||||||||||
Investing activities | |||||||||||||||||||||
Additions to property, plant and equipment | — | (71 | ) | (30 | ) | — | (101 | ) | |||||||||||||
Proceeds from disposals of property, plant and equipment | — | — | 1 | — | 1 | ||||||||||||||||
Acquisitions of business, net of cash acquired | — | — | (546 | ) | — | (546 | ) | ||||||||||||||
Cash flows used for investing activities | — | (71 | ) | (575 | ) | — | (646 | ) | |||||||||||||
Financing activities | |||||||||||||||||||||
Dividend payments | (36 | ) | — | — | — | (36 | ) | ||||||||||||||
Net change in bank indebtedness | (1 | ) | (7 | ) | 8 | — | — | ||||||||||||||
Change in revolving bank credit facility | (140 | ) | — | — | — | (140 | ) | ||||||||||||||
Repayment of long-term debt | — | (2 | ) | (1 | ) | — | (3 | ) | |||||||||||||
Proceeds from receivable securitization facilities | — | — | 90 | — | 90 | ||||||||||||||||
Payments on receivable securitization facilities | — | — | (84 | ) | (84 | ) | |||||||||||||||
Increase in long-term advances to related parties | — | 47 | 310 | (357 | ) | — | |||||||||||||||
Decrease in long-term advances to related parties | (357 | ) | — | — | 357 | — | |||||||||||||||
Other | 3 | — | 1 | — | 4 | ||||||||||||||||
Cash flows (used for) provided from financing activities | (531 | ) | 38 | 324 | — | (169 | ) | ||||||||||||||
Net decrease in cash and cash equivalents | (433 | ) | (16 | ) | (121 | ) | — | (570 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 439 | 22 | 194 | — | 655 | ||||||||||||||||
Cash and cash equivalents at end of period | 6 | 6 | 73 | — | 85 | ||||||||||||||||
For the six months ended June 30, 2013 | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Operating activities | |||||||||||||||||||||
Net (loss) earnings | (1 | ) | 45 | (7 | ) | (38 | ) | (1 | ) | ||||||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 179 | (27 | ) | (6 | ) | 38 | 184 | ||||||||||||||
Cash flows provided from (used for) operating activities | 178 | 18 | (13 | ) | — | 183 | |||||||||||||||
Investing activities | |||||||||||||||||||||
Additions to property, plant and equipment | — | (75 | ) | (43 | ) | — | (118 | ) | |||||||||||||
Proceeds from disposals of property, plant and equipment | — | 10 | — | — | 10 | ||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | (7 | ) | (4 | ) | — | (11 | ) | |||||||||||||
Investment in joint venture | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Cash flows used for investing activities | — | (72 | ) | (48 | ) | — | (120 | ) | |||||||||||||
Financing activities | |||||||||||||||||||||
Dividend payments | (31 | ) | — | — | — | (31 | ) | ||||||||||||||
Net change in bank indebtedness | — | (17 | ) | — | — | (17 | ) | ||||||||||||||
Repayment of long-term debt | (71 | ) | (25 | ) | (1 | ) | — | (97 | ) | ||||||||||||
Stock repurchase | (147 | ) | — | — | — | (147 | ) | ||||||||||||||
Increase in long-term advances to related parties | 24 | 26 | — | (50 | ) | — | |||||||||||||||
Decrease in long-term advances to related parties | — | — | (50 | ) | 50 | — | |||||||||||||||
Other | 3 | (2 | ) | — | — | 1 | |||||||||||||||
Cash flows used for financing activities | (222 | ) | (18 | ) | (51 | ) | — | (291 | ) | ||||||||||||
Net decrease in cash and cash equivalents | (44 | ) | (72 | ) | (112 | ) | — | (228 | ) | ||||||||||||
Impact of foreign exchange on cash | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 275 | 72 | 314 | — | 661 | ||||||||||||||||
Cash and cash equivalents at end of period | 231 | — | 201 | — | 432 | ||||||||||||||||
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Foreign Currency Matters | ' |
FOREIGN CURRENCY MATTERS | |
In March 2013, the FASB issued ASU 2013-05, an update to Foreign Currency Matters, which indicates that a cumulative translation adjustment is attached to the parent’s investment in a foreign entity and should be released in a manner consistent with the derecognition guidance on investments in entities. Thus, the entire amount of the cumulative translation adjustment associated with the foreign entity would be released when there has been (1) a sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity; (2) a loss of a controlling financial interest in an investment in a foreign entity; or (3) a step acquisition for a foreign entity. The update does not change the requirement to release a pro rata portion of the cumulative translation adjustment of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. | |
The Company adopted the new requirement on January 1, 2014 with no impact on the company’s consolidated financial statements, as no triggering event occurred throughout the period. | |
Income Taxes | ' |
INCOME TAXES | |
In July 2013, the FASB issued ASU 2013-11, which provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a NOL or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This accounting standard update requires entities to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. | |
The Company adopted the new requirement on January 1, 2014 with no material impact on the Company’s consolidated financial statements except for the change in presentation. | |
Future Accounting Changes [Member] | ' |
Discontinued Operations | ' |
DISCONTINUED OPERATIONS | |
In April 2014, the FASB issued ASU 2014-08, an update on Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in this update change the requirements for reporting discontinued operations and require additional disclosures for both disposal transactions that meet the criteria for a discontinued operation and disposals that do not meet these criteria. The objective of this update is to reach a greater convergence between the FASB’s and IASB’s reporting requirements for discontinued operations. The amendments are effective for interim and annual periods beginning after December 15, 2014 and will not have an impact on the Company’s consolidated financial statements unless a disposal transaction occurs after the effective date. | |
Revenue from Contracts with Customers | ' |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
In May 2014, the FASB issued ASU 2014-9, an update on revenue from contracts with customers. The core principal of this guideline is that an entity should recognize revenue, to depict the transfer of promised goods or services to customers, in an amount that reflects the consideration for which the entity is entitled to, in exchange for those goods and services. Guidance in this section supersedes the revenue recognition requirements found in topic 605. | |
The amendment will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently evaluating these changes to determine whether they have an impact on the presentation of the consolidated financial statements. The Company does not expect these changes to have a material impact. | |
Stock Compensation | ' |
STOCK COMPENSATION | |
In June 2014, the FASB issued ASU 2014-12, an update on stock compensation. The guideline requires performance targets, which affect vesting and can be achieved after the requisite service period, to be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If achievement of the performance target becomes probable before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. | |
The amendments are effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating these changes to determine whether they have an impact on the presentation of the Consolidated Balance Sheets and Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). The Company does not expect these changes to have a material impact on the consolidated financial statements. |
Acquisition_of_Businesses_Tabl
Acquisition of Businesses (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Laboratorios Indas [Member] | ' | ||||||||
Fair Value of Assets Acquired | ' | ||||||||
The table below illustrates the preliminary purchase price allocation: | |||||||||
Fair value of net assets acquired at the date of acquisition | |||||||||
Receivables | 101 | ||||||||
Inventory | 28 | ||||||||
Income and other taxes receivable | 3 | ||||||||
Property, plant and equipment | 72 | ||||||||
Intangible assets | |||||||||
Customer relationships | 142 | ||||||||
Trade names | 81 | ||||||||
Catalog rights | 29 | ||||||||
252 | |||||||||
Goodwill (Note 10) | 286 | ||||||||
Deferred income tax assets | 17 | ||||||||
Total assets | 759 | ||||||||
Less: Liabilities | |||||||||
Trade and other payables | 71 | ||||||||
Income and other taxes payable | 3 | ||||||||
Long-term debt (including short-term portion) | 42 | ||||||||
Deferred income tax liabilities | 96 | ||||||||
Other liabilities and deferred credits | 1 | ||||||||
Total liabilities | 213 | ||||||||
Fair value of net assets acquired at the date of acquisition | 546 | ||||||||
Xerox [Member] | ' | ||||||||
Fair Value of Assets Acquired | ' | ||||||||
The table below illustrates the purchase price allocation: | |||||||||
Inventory | 4 | ||||||||
Intangible assets | |||||||||
Customer relationships (1) | 1 | ||||||||
License rights (2) | 6 | ||||||||
7 | |||||||||
Total assets | 11 | ||||||||
Fair value of assets acquired at the date of acquisition | 11 | ||||||||
(1) | The useful life of the Customer relationships acquired is 20 years. | ||||||||
(2) | Indefinite useful life. |
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities and Fair Value Measurement (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Derivative Financial Instruments for Natural Gas Contracts Outstanding | ' | ||||||||||||||||||||||||||||
The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of June 30, 2014 to hedge forecasted purchases: | |||||||||||||||||||||||||||||
Commodity | Notional contractual quantity | Notional contractual value | Percentage of forecasted | ||||||||||||||||||||||||||
under derivative contracts | under derivative | purchases under derivative | |||||||||||||||||||||||||||
contracts | contracts for | ||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
2014(2) | 2015 | 2016 | 2017 | ||||||||||||||||||||||||||
Natural gas | 20,400,000 | MMBTU | (1) | $ | 85 | 53 | % | 45 | % | 32 | % | 10 | % | ||||||||||||||||
-1 | MMBTU: Millions of British thermal units | ||||||||||||||||||||||||||||
-2 | Represents the remaining six months of 2014 | ||||||||||||||||||||||||||||
Currency Values under Contracts Pursuant to Currency Derivatives Outstanding | ' | ||||||||||||||||||||||||||||
The following table presents the currency values under contracts pursuant to currency derivatives outstanding as of June 30, 2014 to hedge forecasted purchases and sales: | |||||||||||||||||||||||||||||
Contract | Notional contractual value | Percentage of forecasted | |||||||||||||||||||||||||||
net exposures under | |||||||||||||||||||||||||||||
contracts for | |||||||||||||||||||||||||||||
2014 | 2015 | ||||||||||||||||||||||||||||
Currency derivatives purchased | CDN | $ | 490 | 53 | % | 31 | % | ||||||||||||||||||||||
USD | $ | 45 | 68 | % | 36 | % | |||||||||||||||||||||||
GBP | £ | 16 | 85 | % | 40 | % | |||||||||||||||||||||||
Currency derivatives sold | CDN | $ | 490 | 53 | % | 31 | % | ||||||||||||||||||||||
USD | $ | 45 | 68 | % | 36 | % | |||||||||||||||||||||||
GBP | £ | 16 | 85 | % | 40 | % | |||||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||||||||||
The following tables present information about the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (except Long-term debt, see (c) below) at June 30, 2014 and December 31, 2013, in accordance with the accounting standards for fair value measurements and disclosures and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. | |||||||||||||||||||||||||||||
Fair Value of financial instruments at: | June 30, | Quoted prices in | Significant | Significant | Balance sheet classification | ||||||||||||||||||||||||
2014 | active markets for | observable | unobservable | ||||||||||||||||||||||||||
identical assets | inputs | inputs | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||||||
Derivatives designated as cash flow and net investment hedging instruments under the Derivatives and Hedging Topic of FASB ASC: | |||||||||||||||||||||||||||||
Asset derivatives | |||||||||||||||||||||||||||||
Currency derivatives | 10 | — | 10 | — | (a) Prepaid expenses | ||||||||||||||||||||||||
Natural gas swap contracts | 3 | — | 3 | — | (a) Prepaid expenses | ||||||||||||||||||||||||
Natural gas swap contracts | 1 | — | 1 | — | (a) Intangible assets and deferred charges | ||||||||||||||||||||||||
Total Assets | 14 | — | 14 | — | |||||||||||||||||||||||||
Liabilities derivatives | |||||||||||||||||||||||||||||
Currency derivatives | 4 | — | 4 | — | (a) Trade and other payables | ||||||||||||||||||||||||
Natural gas swap contracts | 1 | — | 1 | — | (a) Trade and other payables | ||||||||||||||||||||||||
Total Liabilities | 5 | — | 5 | — | |||||||||||||||||||||||||
Other Instruments: | |||||||||||||||||||||||||||||
Asset backed notes | 7 | — | 6 | 1 | (b) Other assets | ||||||||||||||||||||||||
Long-term debt | 1,611 | 1,611 | — | — | (c) Long-term debt | ||||||||||||||||||||||||
The cumulative gain recorded in Other comprehensive income (loss) relating to natural gas contracts of $3 million at June 30, 2014, will be recognized in Cost of sales upon maturity of the derivatives over the next 42 months at the then prevailing values, which may be different from those at June 30, 2014. | |||||||||||||||||||||||||||||
The cumulative gain recorded in Other comprehensive income (loss) relating to currency options hedging forcasted purchases of $6 million at June 30, 2014, will be recognized in Cost of sales upon maturity of the derivatives over the next 21 months at the then prevailing values, which may be different from those at June 30, 2014. | |||||||||||||||||||||||||||||
Fair Value of financial instruments at: | December 31, | Quoted prices in | Significant | Significant | Balance sheet classification | ||||||||||||||||||||||||
2013 | active markets for | observable | unobservable | ||||||||||||||||||||||||||
identical assets | inputs | inputs | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments under the Derivatives and Hedging Topic of FASB ASC: | |||||||||||||||||||||||||||||
Asset derivatives | |||||||||||||||||||||||||||||
Currency derivatives | 3 | — | 3 | — | (a) Prepaid expenses | ||||||||||||||||||||||||
Natural gas swap contracts | 2 | — | 2 | — | (a) Prepaid expenses | ||||||||||||||||||||||||
Natural gas swap contracts | 1 | — | 1 | — | (a) Intangible assets and deferred charges | ||||||||||||||||||||||||
Total Assets | 6 | — | 6 | — | |||||||||||||||||||||||||
Liabilities derivatives | |||||||||||||||||||||||||||||
Currency derivatives | 10 | — | 10 | — | (a) Trade and other payables | ||||||||||||||||||||||||
Natural gas swap contracts | 1 | — | 1 | — | (a) Other liabilities and deferred credits | ||||||||||||||||||||||||
Total Liabilities | 11 | — | 11 | — | |||||||||||||||||||||||||
Other Instruments: | |||||||||||||||||||||||||||||
Asset backed notes | 6 | — | 5 | 1 | (b) Other assets | ||||||||||||||||||||||||
Long-term debt | 1,620 | 1,620 | — | — | (c) Long-term debt | ||||||||||||||||||||||||
(a) | Fair value of the Company’s derivatives is classified under Level 2 (inputs that are observable; directly or indirectly) as it is measured as follows: | ||||||||||||||||||||||||||||
– | For currency derivatives: Fair value is measured using techniques derived from the Black-Scholes pricing model. Interest rates, forward market rates and volatility are used as inputs for such valuation techniques. | ||||||||||||||||||||||||||||
– | For natural gas contracts: Fair value is measured using the discounted difference between contractual rates and quoted market future rates. | ||||||||||||||||||||||||||||
(b) | Asset Backed Notes (“ABN”) are reported at fair value utilizing Level 2 or Level 3 inputs. Fair value of ABN reported under Level 2 is based on current market quotes. Fair value of ABN reported under Level 3 is based on the value of the collateral investments held in the conduit issuer, reduced by the negative value of credit default derivatives, with an additional discount applied for illiquidity. | ||||||||||||||||||||||||||||
(c) | Fair value of the Company’s long-term debt is measured by comparison to market prices of its debt. In accordance with US GAAP, the Company’s long-term debt is not carried at fair value on the Consolidated Balance Sheets at June 30, 2014 and December 31, 2013. However, fair value disclosure is required. The carrying value of the Company’s long-term debt is $1,417 million and $1,514 million at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||||
Beginning and Ending Balances Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||||||
The following table reconciles the beginning and ending balances of ABN measured at fair value on a recurring basis using significant unobservable (Level 3) inputs during the reported periods: | |||||||||||||||||||||||||||||
ASSET BACKED NOTES | |||||||||||||||||||||||||||||
Balance at December 31, 2013 | 1 | ||||||||||||||||||||||||||||
Net unrealized gains included in earnings (a) | — | ||||||||||||||||||||||||||||
Transfer out of Level 3 (b) | — | ||||||||||||||||||||||||||||
Balance at June 30, 2014 | 1 | ||||||||||||||||||||||||||||
(a) | Earnings effect is primarily included in Other operating loss, net in the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). | ||||||||||||||||||||||||||||
(b) | Transfers out of Level 3 are considered to occur at the end of the period. | ||||||||||||||||||||||||||||
Earnings_Loss_Per_Common_Share1
Earnings (Loss) Per Common Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Reconciliation Between Basic and Diluted Earnings Loss Per Share | ' | ||||||||||||||||
The following table provides the reconciliation between basic and diluted earnings loss per share: | |||||||||||||||||
For the three | For the six | ||||||||||||||||
months ended | months ended | ||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net earnings (loss) | $ | 40 | $ | (46 | ) | $ | 79 | $ | (1 | ) | |||||||
Weighted average number of common and exchangeable shares outstanding (millions) | 65 | 66.9 | 64.9 | 68.2 | |||||||||||||
Effect of dilutive securities (millions) | 0.1 | — | 0.1 | — | |||||||||||||
Weighted average number of diluted common and exchangeable shares outstanding (millions) | 65.1 | 66.9 | 65 | 68.2 | |||||||||||||
Basic net earnings (loss) per common share (in dollars) | $ | 0.62 | $ | (0.69 | ) | $ | 1.22 | $ | (0.01 | ) | |||||||
Diluted net earnings (loss) per common share (in dollars) | $ | 0.61 | $ | (0.69 | ) | $ | 1.22 | $ | (0.01 | ) | |||||||
Securities that Could Potentially Dilute Basic Earnings (Loss) Per Common Share in Future | ' | ||||||||||||||||
The following table provides the securities that could potentially dilute basic earnings per common share in the future, but were not included in the computation of diluted earnings (loss) per common share because to do so would have been anti-dilutive: | |||||||||||||||||
For the three | For the six | ||||||||||||||||
months ended | months ended | ||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Restricted stock units | — | 141,632 | — | 141,632 | |||||||||||||
Performance share units | — | 42,378 | — | 42,378 | |||||||||||||
Options | 366,274 | 100,552 | 337,272 | 145,160 |
Pension_Plans_and_Other_PostRe1
Pension Plans and Other Post-Retirement Benefit Plans (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans | ' | ||||||||||||||||
Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: | |||||||||||||||||
For the three months ended | For the six months ended | ||||||||||||||||
June 30, 2014 | June 30, 2014 | ||||||||||||||||
Pension | Other | Pension | Other | ||||||||||||||
plans | post-retirement | plans | post-retirement | ||||||||||||||
benefit plans | benefit plans | ||||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Service cost | 9 | — | 18 | 1 | |||||||||||||
Interest expense | 20 | 2 | 40 | 3 | |||||||||||||
Expected return on plan assets | (26 | ) | — | (52 | ) | — | |||||||||||
Amortization of net actuarial loss | 3 | — | 5 | — | |||||||||||||
Amortization of prior year service costs | — | — | 1 | — | |||||||||||||
Net periodic benefit cost | 6 | 2 | 12 | 4 | |||||||||||||
Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: | |||||||||||||||||
For the three months ended | For the six months ended | ||||||||||||||||
June 30, 2013 | June 30, 2013 | ||||||||||||||||
Pension | Other | Pension | Other | ||||||||||||||
plans | post-retirement | plans | post-retirement | ||||||||||||||
benefit plans | benefit plans | ||||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Service cost | 11 | — | 22 | 1 | |||||||||||||
Interest expense | 18 | 1 | 37 | 2 | |||||||||||||
Expected return on plan assets | (24 | ) | — | (48 | ) | — | |||||||||||
Amortization of net actuarial loss | 7 | 1 | 14 | 1 | |||||||||||||
Settlement loss (a) | 13 | — | 13 | — | |||||||||||||
Amortization of prior year service costs | 1 | — | 1 | — | |||||||||||||
Net periodic benefit cost | 26 | 2 | 39 | 4 | |||||||||||||
(a) | The settlement loss of $13 million in the pension plans for the three and six months ended June 30, 2013 is related to the previously closed Big River and Dryden mills for $6 million and $7 million, respectively (see Note 12 “Closure and restructuring costs and liability and impairment and write-down of property, plant and equipment”). |
Other_Operating_Loss_Net_Table
Other Operating Loss, Net (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||||||
Components of Other Operating Loss, Net | ' | ||||||||||||||||
The Company’s other operating loss, net includes the following: | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Reversal of alternative fuel tax credits (Note 8) | — | — | — | 26 | |||||||||||||
Gain on sale of property, plant and equipment (1) | — | — | — | (10 | ) | ||||||||||||
Environmental provision | — | 1 | — | 2 | |||||||||||||
Foreign exchange loss (gain) | 2 | (1 | ) | (1 | ) | (2 | ) | ||||||||||
Weston litigation (2) | — | 49 | — | 49 | |||||||||||||
Other | — | — | 1 | 2 | |||||||||||||
Other operating loss, net | 2 | 49 | — | 67 | |||||||||||||
(1) | On March 22, 2013, the Company sold the building, remaining equipment and related land of the closed pulp and paper mill in Port Edwards, Wisconsin and recorded a gain on the sale of approximately $10 million. The transaction included specific machinery, equipment, furniture, parts, supplies, tools, real estate, land improvements, and other fixed or tangible assets. The assets were sold “as is” for proceeds of approximately $9 million and the environmental provision of $3 million related to these assets was contractually passed on to the buyer and released from the Company’s liabilities. The net book value of the assets sold was approximately $2 million. | ||||||||||||||||
(2) | On June 24, 2013, the parties agreed to settle the Weston litigation for a payment by Domtar to Weston of $49 million (CDN $50 million). |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Components of Inventories | ' | ||||||||
The following table presents the components of inventories: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Work in process and finished goods | 406 | 386 | |||||||
Raw materials | 122 | 102 | |||||||
Operating and maintenance supplies | 200 | 197 | |||||||
728 | 685 | ||||||||
Goodwill_Tables
Goodwill (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||
Changes in Carrying Value of Goodwill | ' | ||||
The carrying value and any changes in the carrying value of goodwill are as follows: | |||||
June 30, | |||||
2014 | |||||
$ | |||||
Balance at December 31, 2013 | 369 | ||||
Acquisition of Laboratorios Indas | 286 | ||||
Balance at end of period | 655 | ||||
Intangible_Assets_Net_Tables
Intangible Assets, Net (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Components of Intangible Assets, Net | ' | ||||||||||||||||||||||||||||
The following table presents the components of intangible assets, net: | |||||||||||||||||||||||||||||
Estimated useful | June 30, | December 31, | |||||||||||||||||||||||||||
lives (in years) | 2014 | 2013 | |||||||||||||||||||||||||||
Gross carrying | Accumulated | Net | Gross carrying | Accumulated | Net | ||||||||||||||||||||||||
amount | amortization | amount | amortization | ||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Intangible assets subject to amortization | |||||||||||||||||||||||||||||
Water rights | 40 | 8 | (1 | ) | 7 | 8 | (1 | ) | 7 | ||||||||||||||||||||
Customer relationships (1) | 10 - 40 | 399 | (24 | ) | 375 | 256 | (14 | ) | 242 | ||||||||||||||||||||
Technology | 7 - 20 | 8 | (2 | ) | 6 | 8 | (1 | ) | 7 | ||||||||||||||||||||
Non-Compete | 9 | 1 | — | 1 | 1 | — | 1 | ||||||||||||||||||||||
License rights | 12 | 29 | (2 | ) | 27 | 29 | (1 | ) | 28 | ||||||||||||||||||||
445 | (29 | ) | 416 | 302 | (17 | ) | 285 | ||||||||||||||||||||||
Intangible assets not subject to amortization | |||||||||||||||||||||||||||||
Trade names (1) | 197 | — | 197 | 116 | — | 116 | |||||||||||||||||||||||
License rights | 6 | — | 6 | 6 | — | 6 | |||||||||||||||||||||||
Catalog rights (1) | 29 | — | 29 | — | — | — | |||||||||||||||||||||||
Total | 677 | (29 | ) | 648 | 424 | (17 | ) | 407 | |||||||||||||||||||||
Amortization Expense Related to Intangible Assets | ' | ||||||||||||||||||||||||||||
Amortization expense for the next five years related to intangible assets is expected to be as follows: | |||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
Amortization expense related to intangible assets | 21 | 21 | 21 | 21 | 21 | ||||||||||||||||||||||||
(1) | Increase relates to the acquisition of Laboratorios Indas on January 2, 2014. |
Closure_and_Restructuring_Cost1
Closure and Restructuring Costs and Liability and Impairment and Write-Down of Property, Plant and Equipment (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||||||||||||||||||||||
Components of Closure and Restructuring Costs by Segment | ' | ||||||||||||||||||||||||||||||||
The following tables provide the components of closure and restructuring costs by segment: | |||||||||||||||||||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||||||||||
Pulp and Paper | Personal | Corporate | Total | Pulp and Paper | Personal | Corporate | Total | ||||||||||||||||||||||||||
Care | Care | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Severance and termination costs | — | — | — | — | (1 | ) | 2 | — | 1 | ||||||||||||||||||||||||
Inventory obsolescence | — | — | — | — | (1 | ) | — | — | (1 | ) | |||||||||||||||||||||||
Pension settlement and withdrawal liability | — | — | — | — | 10 | — | 6 | 16 | |||||||||||||||||||||||||
Other | — | — | — | — | 2 | — | — | 2 | |||||||||||||||||||||||||
Closure and restructuring costs | — | — | — | — | 10 | 2 | 6 | 18 | |||||||||||||||||||||||||
Six months ended | Six months ended | ||||||||||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||||||||||
Pulp and Paper | Personal | Corporate | Total | Pulp and Paper | Personal | Corporate | Total | ||||||||||||||||||||||||||
Care | Care | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Severance and termination costs | — | 1 | — | 1 | (2 | ) | 2 | — | — | ||||||||||||||||||||||||
Inventory obsolescence | — | — | — | — | (1 | ) | — | — | (1 | ) | |||||||||||||||||||||||
Pension settlement and withdrawal liability | — | — | — | — | 11 | — | 6 | 17 | |||||||||||||||||||||||||
Other | — | — | — | — | 2 | — | — | 2 | |||||||||||||||||||||||||
Closure and restructuring costs | — | 1 | — | 1 | 10 | 2 | 6 | 18 | |||||||||||||||||||||||||
Activity in Closure and Restructuring Liability | ' | ||||||||||||||||||||||||||||||||
The following table provides the activity in the closure and restructuring liability: | |||||||||||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||||||||||
$ | |||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | 3 | ||||||||||||||||||||||||||||||||
Additions | 1 | ||||||||||||||||||||||||||||||||
Acquisition of business | 1 | ||||||||||||||||||||||||||||||||
Payments | (2 | ) | |||||||||||||||||||||||||||||||
Balance at end of period | 3 | ||||||||||||||||||||||||||||||||
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Loss by Component | ' | ||||||||||||||||||||
The following table presents the changes in Accumulated other comprehensive loss by component(1) for the periods ended June 30, 2014 and 2013: | |||||||||||||||||||||
Net derivative gains | Pension items(2) | Post-retirement | Foreign currency | Total | |||||||||||||||||
(losses) on cash flow | benefit items(2) | items | |||||||||||||||||||
hedges | |||||||||||||||||||||
Balance at December 31, 2013 | — | (210 | ) | (7 | ) | 152 | (65 | ) | |||||||||||||
Natural gas swap contracts | 4 | N/A | N/A | N/A | 4 | ||||||||||||||||
Currency options | 1 | N/A | N/A | N/A | 1 | ||||||||||||||||
Foreign currency items | N/A | N/A | N/A | (12 | ) | (12 | ) | ||||||||||||||
Other comprehensive (loss) income before reclassifications | 5 | — | — | (12 | ) | (7 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 3 | 5 | — | — | 8 | ||||||||||||||||
Net current period other comprehensive income (loss) | 8 | 5 | — | (12 | ) | 1 | |||||||||||||||
Balance at June 30, 2014 | 8 | (205 | ) | (7 | ) | 140 | (64 | ) | |||||||||||||
Balance at December 31, 2012 | 5 | (326 | ) | (15 | ) | 208 | (128 | ) | |||||||||||||
Natural gas swap contracts | (1 | ) | N/A | N/A | N/A | (1 | ) | ||||||||||||||
Currency options | (7 | ) | N/A | N/A | N/A | (7 | ) | ||||||||||||||
Net investment hedge | — | N/A | N/A | N/A | — | ||||||||||||||||
Foreign currency items | N/A | N/A | N/A | (60 | ) | (60 | ) | ||||||||||||||
Other comprehensive (loss) income before reclassifications | (8 | ) | — | — | (60 | ) | (68 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 1 | 21 | — | — | 22 | ||||||||||||||||
Net current period other comprehensive (loss) income | (7 | ) | 21 | — | (60 | ) | (46 | ) | |||||||||||||
Balance at June 30, 2013 | (2 | ) | (305 | ) | (15 | ) | 148 | (174 | ) | ||||||||||||
-1 | All amounts are after tax. Amount in parenthesis indicate losses. | ||||||||||||||||||||
-2 | The accrued benefit obligation is actuarially determined on an annual basis as of December 31. | ||||||||||||||||||||
Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss | ' | ||||||||||||||||||||
The following tables present reclassifications out of Accumulated other comprehensive loss: | |||||||||||||||||||||
Details of Accumulated other | Amount reclassified from | Affected line item in the | |||||||||||||||||||
comprehensive loss components | Accumulated other | Consolidated Statements of Earnings (Loss) | |||||||||||||||||||
comprehensive loss | and Comprehensive Income (Loss) | ||||||||||||||||||||
For the three months ended | |||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||
Net derivative gains (losses) on cash flow hedges | |||||||||||||||||||||
Natural gas swap contracts | (1 | ) | — | Cost of Sales | |||||||||||||||||
Currency options | 3 | — | Cost of Sales | ||||||||||||||||||
Total before tax | 2 | — | |||||||||||||||||||
Tax benefit | (1 | ) | — | Income tax benefit | |||||||||||||||||
Net of tax | 1 | — | |||||||||||||||||||
Amortization of defined benefit pension items | |||||||||||||||||||||
Amortization of net actuarial loss and prior year service cost | 3 | 22 | (a) | ||||||||||||||||||
Tax benefit | — | (6 | ) | Income tax benefit | |||||||||||||||||
Net of tax | 3 | 16 | |||||||||||||||||||
Details of Accumulated other | Amount reclassified from | Affected line item in the | |||||||||||||||||||
comprehensive loss components | Accumulated other | Consolidated Statements of Earnings (Loss) | |||||||||||||||||||
comprehensive loss | and Comprehensive Income (Loss) | ||||||||||||||||||||
For the six months ended | |||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||
Net derivative gains (losses) on cash flow hedges | |||||||||||||||||||||
Natural gas swap contracts | (3 | ) | 2 | Cost of Sales | |||||||||||||||||
Currency options | 9 | — | Cost of Sales | ||||||||||||||||||
Total before tax | 6 | 2 | |||||||||||||||||||
Tax benefit | (3 | ) | (1 | ) | Income tax benefit | ||||||||||||||||
Net of tax | 3 | 1 | |||||||||||||||||||
Amortization of defined benefit pension items | |||||||||||||||||||||
Amortization of net actuarial loss and prior year service cost | 6 | 29 | (a) | ||||||||||||||||||
Tax benefit | (1 | ) | (8 | ) | Income tax benefit | ||||||||||||||||
Net of tax | 5 | 21 | |||||||||||||||||||
(a) | These amounts are included in the computation of net periodic benefit cost. Refer to Note 6 “Pension plans and other post-retirement benefit plans” for additional details. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Changes in Reserve for Environmental Remediation and Asset Retirement Obligations | ' | ||||
The following table reflects changes in the reserve for environmental remediation and asset retirement obligations: | |||||
June 30, 2014 | |||||
$ | |||||
Balance at beginning of period | 67 | ||||
Additions | 1 | ||||
Environmental spending | (4 | ) | |||
Balance at end of period | 64 | ||||
Segment_Disclosures_Tables
Segment Disclosures (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Analysis and Reconciliation of Segment Information | ' | ||||||||||||||||
An analysis and reconciliation of the Company’s reportable segment information to the respective information in the financial statements is as follows: | |||||||||||||||||
For the three months ended | For the six months ended | ||||||||||||||||
SEGMENT DATA | June 30, | June 30, | June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Sales | |||||||||||||||||
Pulp and Paper | 1,160 | 1,208 | 2,328 | 2,446 | |||||||||||||
Personal Care | 234 | 108 | 467 | 219 | |||||||||||||
Total for reportable segments | 1,394 | 1,316 | 2,795 | 2,665 | |||||||||||||
Intersegment sales - Pulp and Paper | (9 | ) | (4 | ) | (16 | ) | (8 | ) | |||||||||
Consolidated sales | 1,385 | 1,312 | 2,779 | 2,657 | |||||||||||||
Depreciation and amortization and impairment and write-down of property, plant and equipment | |||||||||||||||||
Pulp and Paper | 79 | 87 | 162 | 176 | |||||||||||||
Personal Care | 17 | 6 | 33 | 12 | |||||||||||||
Total for reportable segments | 96 | 93 | 195 | 188 | |||||||||||||
Impairment and write-down of property, plant and equipment - Pulp and paper | — | 5 | — | 15 | |||||||||||||
Consolidated depreciation and amortization and impairment and write-down of property, plant and equipment | 96 | 98 | 195 | 203 | |||||||||||||
Operating income (loss) | |||||||||||||||||
Pulp and Paper | 69 | 16 | 138 | 54 | |||||||||||||
Personal Care | 14 | 10 | 29 | 23 | |||||||||||||
Corporate | (4 | ) | (56 | ) | (9 | ) | (58 | ) | |||||||||
Consolidated operating income (loss) | 79 | (30 | ) | 158 | 19 | ||||||||||||
Interest expense, net | 26 | 21 | 51 | 46 | |||||||||||||
Earnings (loss) before income taxes and equity loss | 53 | (51 | ) | 107 | (27 | ) | |||||||||||
Income tax expense (benefit) | 13 | (5 | ) | 28 | (27 | ) | |||||||||||
Equity loss, net of taxes | — | — | — | 1 | |||||||||||||
Net earnings (loss) | 40 | (46 | ) | 79 | (1 | ) | |||||||||||
Supplemental_Guarantor_Financi1
Supplemental Guarantor Financial Information (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||||||||||||||
Condensed Consolidating Statement of (Loss) Earnings and Comprehensive (Loss) Income | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS AND | For the three months ended June 30, 2014 | ||||||||||||||||||||
COMPREHENSIVE INCOME | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 1,091 | 570 | (276 | ) | 1,385 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 916 | 468 | (276 | ) | 1,108 | |||||||||||||||
Depreciation and amortization | — | 65 | 31 | — | 96 | ||||||||||||||||
Selling, general and administrative | 5 | 42 | 53 | — | 100 | ||||||||||||||||
Other operating loss, net | — | 2 | — | — | 2 | ||||||||||||||||
5 | 1,025 | 552 | (276 | ) | 1,306 | ||||||||||||||||
Operating (loss) income | (5 | ) | 66 | 18 | — | 79 | |||||||||||||||
Interest expense (income), net | 25 | 7 | (6 | ) | — | 26 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (30 | ) | 59 | 24 | — | 53 | |||||||||||||||
Income tax (benefit) expense | (7 | ) | 15 | 5 | — | 13 | |||||||||||||||
Equity loss, net of taxes | — | — | — | — | — | ||||||||||||||||
Share in earnings of equity accounted investees | 63 | 19 | — | (82 | ) | — | |||||||||||||||
Net earnings | 40 | 63 | 19 | (82 | ) | 40 | |||||||||||||||
Other comprehensive income | — | 9 | 27 | — | 36 | ||||||||||||||||
Comprehensive income | 40 | 72 | 46 | (82 | ) | 76 | |||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS AND | For the six months ended June 30, 2014 | ||||||||||||||||||||
COMPREHENSIVE INCOME | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 2,200 | 1,124 | (545 | ) | 2,779 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 1,849 | 907 | (545 | ) | 2,211 | |||||||||||||||
Depreciation and amortization | — | 133 | 62 | — | 195 | ||||||||||||||||
Selling, general and administrative | 18 | 115 | 81 | — | 214 | ||||||||||||||||
Closure and restructuring costs | — | 1 | — | — | 1 | ||||||||||||||||
Other operating (loss) income, net | — | 1 | (1 | ) | — | — | |||||||||||||||
18 | 2,099 | 1,049 | (545 | ) | 2,621 | ||||||||||||||||
Operating (loss) income | (18 | ) | 101 | 75 | — | 158 | |||||||||||||||
Interest expense (income), net | 50 | 12 | (11 | ) | — | 51 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (68 | ) | 89 | 86 | — | 107 | |||||||||||||||
Income tax (benefit) expense | (17 | ) | 23 | 22 | — | 28 | |||||||||||||||
Equity loss, net of taxes | — | — | — | — | — | ||||||||||||||||
Share in earnings of equity accounted investees | 130 | 64 | — | (194 | ) | — | |||||||||||||||
Net earnings | 79 | 130 | 64 | (194 | ) | 79 | |||||||||||||||
Other comprehensive income (loss) | 1 | 8 | (8 | ) | — | 1 | |||||||||||||||
Comprehensive income | 80 | 138 | 56 | (194 | ) | 80 | |||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF LOSS AND | For the three months ended June 30, 2013 | ||||||||||||||||||||
COMPREHENSIVE LOSS | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 1,081 | 492 | (261 | ) | 1,312 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 909 | 434 | (261 | ) | 1,082 | |||||||||||||||
Depreciation and amortization | — | 67 | 26 | — | 93 | ||||||||||||||||
Selling, general and administrative | 7 | 62 | 26 | — | 95 | ||||||||||||||||
Impairment and write-down of property, plant and equipment | — | 5 | — | — | 5 | ||||||||||||||||
Closure and restructuring costs | — | 5 | 13 | — | 18 | ||||||||||||||||
Other operating loss, net | — | 2 | 47 | — | 49 | ||||||||||||||||
7 | 1,050 | 546 | (261 | ) | 1,342 | ||||||||||||||||
Operating (loss) income | (7 | ) | 31 | (54 | ) | — | (30 | ) | |||||||||||||
Interest expense (income), net | 22 | 5 | (6 | ) | — | 21 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (29 | ) | 26 | (48 | ) | — | (51 | ) | |||||||||||||
Income tax (benefit) expense | (7 | ) | 8 | (6 | ) | — | (5 | ) | |||||||||||||
Equity loss, net of taxes | — | — | — | — | — | ||||||||||||||||
Share in earnings of equity accounted investees | (24 | ) | (42 | ) | — | 66 | — | ||||||||||||||
Net loss | (46 | ) | (24 | ) | (42 | ) | 66 | (46 | ) | ||||||||||||
Other comprehensive loss | (3 | ) | (4 | ) | (19 | ) | — | (26 | ) | ||||||||||||
Comprehensive loss | (49 | ) | (28 | ) | (61 | ) | 66 | (72 | ) | ||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF (LOSS) EARNINGS AND | For the six months ended June 30, 2013 | ||||||||||||||||||||
COMPREHENSIVE (LOSS) INCOME | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 2,188 | 984 | (515 | ) | 2,657 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 1,851 | 828 | (515 | ) | 2,164 | |||||||||||||||
Depreciation and amortization | — | 135 | 53 | — | 188 | ||||||||||||||||
Selling, general and administrative | 13 | 135 | 38 | — | 186 | ||||||||||||||||
Impairment and write-down of property, plant and equipment | — | 5 | 10 | — | 15 | ||||||||||||||||
Closure and restructuring costs | — | 6 | 12 | — | 18 | ||||||||||||||||
Other operating loss, net | — | 20 | 47 | — | 67 | ||||||||||||||||
13 | 2,152 | 988 | (515 | ) | 2,638 | ||||||||||||||||
Operating (loss) income | (13 | ) | 36 | (4 | ) | — | 19 | ||||||||||||||
Interest expense (income), net | 49 | 9 | (12 | ) | — | 46 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (62 | ) | 27 | 8 | — | (27 | ) | ||||||||||||||
Income tax (benefit) expense | (16 | ) | (25 | ) | 14 | — | (27 | ) | |||||||||||||
Equity loss, net of taxes | — | — | 1 | — | 1 | ||||||||||||||||
Share in earnings of equity accounted investees | 45 | (7 | ) | — | (38 | ) | — | ||||||||||||||
Net (loss) earnings | (1 | ) | 45 | (7 | ) | (38 | ) | (1 | ) | ||||||||||||
Other comprehensive income (loss) | 1 | (4 | ) | (43 | ) | — | (46 | ) | |||||||||||||
Comprehensive income (loss) | — | 41 | (50 | ) | (38 | ) | (47 | ) | |||||||||||||
Condensed Consolidating Balance Sheet | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | June 30, 2014 | ||||||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Assets | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 6 | 6 | 73 | — | 85 | ||||||||||||||||
Receivables | — | 348 | 327 | — | 675 | ||||||||||||||||
Inventories | — | 503 | 225 | — | 728 | ||||||||||||||||
Prepaid expenses | 14 | 10 | 13 | — | 37 | ||||||||||||||||
Income and other taxes receivable | 85 | — | 12 | (43 | ) | 54 | |||||||||||||||
Intercompany accounts | 773 | 4,297 | 17 | (5,087 | ) | — | |||||||||||||||
Deferred income taxes | — | 25 | 21 | — | 46 | ||||||||||||||||
Total current assets | 878 | 5,189 | 688 | (5,130 | ) | 1,625 | |||||||||||||||
Property, plant and equipment, at cost | — | 6,036 | 2,996 | — | 9,032 | ||||||||||||||||
Accumulated depreciation | — | (3,863 | ) | (1,903 | ) | — | (5,766 | ) | |||||||||||||
Net property, plant and equipment | — | 2,173 | 1,093 | — | 3,266 | ||||||||||||||||
Goodwill | — | 296 | 359 | — | 655 | ||||||||||||||||
Intangible assets, net of amortization | — | 268 | 380 | — | 648 | ||||||||||||||||
Investments in affiliates | 7,824 | 2,192 | — | (10,016 | ) | — | |||||||||||||||
Intercompany advances | 6 | 79 | 328 | (413 | ) | — | |||||||||||||||
Other assets | 26 | 11 | 152 | (44 | ) | 145 | |||||||||||||||
Total assets | 8,734 | 10,208 | 3,000 | (15,603 | ) | 6,339 | |||||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Bank indebtedness | — | 6 | 9 | — | 15 | ||||||||||||||||
Trade and other payables | 58 | 380 | 264 | — | 702 | ||||||||||||||||
Intercompany accounts | 4,295 | 697 | 95 | (5,087 | ) | — | |||||||||||||||
Income and other taxes payable | 3 | 54 | 18 | (43 | ) | 32 | |||||||||||||||
Long-term debt due within one year | — | 2 | 5 | — | 7 | ||||||||||||||||
Total current liabilities | 4,356 | 1,139 | 391 | (5,130 | ) | 756 | |||||||||||||||
Long-term debt | 1,354 | 3 | 53 | — | 1,410 | ||||||||||||||||
Intercompany long-term loans | 185 | 228 | — | (413 | ) | — | |||||||||||||||
Deferred income taxes and other | — | 874 | 168 | (44 | ) | 998 | |||||||||||||||
Other liabilities and deferred credits | 13 | 140 | 196 | — | 349 | ||||||||||||||||
Shareholders’ equity | 2,826 | 7,824 | 2,192 | (10,016 | ) | 2,826 | |||||||||||||||
Total liabilities and shareholders’ equity | 8,734 | 10,208 | 3,000 | (15,603 | ) | 6,339 | |||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | December 31, 2013 | ||||||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Assets | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 439 | 22 | 194 | — | 655 | ||||||||||||||||
Receivables | — | 402 | 199 | — | 601 | ||||||||||||||||
Inventories | — | 480 | 205 | — | 685 | ||||||||||||||||
Prepaid expenses | 7 | 7 | 9 | — | 23 | ||||||||||||||||
Income and other taxes receivable | 47 | 1 | 13 | — | 61 | ||||||||||||||||
Intercompany accounts | 590 | 3,951 | 28 | (4,569 | ) | — | |||||||||||||||
Deferred income taxes | — | 31 | 21 | — | 52 | ||||||||||||||||
Total current assets | 1,083 | 4,894 | 669 | (4,569 | ) | 2,077 | |||||||||||||||
Property, plant and equipment, at cost | — | 5,968 | 2,915 | — | 8,883 | ||||||||||||||||
Accumulated depreciation | — | (3,734 | ) | (1,860 | ) | — | (5,594 | ) | |||||||||||||
Net property, plant and equipment | — | 2,234 | 1,055 | — | 3,289 | ||||||||||||||||
Goodwill | — | 296 | 73 | — | 369 | ||||||||||||||||
Intangible assets, net of amortization | — | 273 | 134 | — | 407 | ||||||||||||||||
Investments in affiliates | 7,650 | 2,097 | — | (9,747 | ) | — | |||||||||||||||
Intercompany long-term advances | 6 | 79 | 654 | (739 | ) | — | |||||||||||||||
Other assets | 28 | 12 | 112 | (16 | ) | 136 | |||||||||||||||
Total assets | 8,767 | 9,885 | 2,697 | (15,071 | ) | 6,278 | |||||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Bank indebtedness | 1 | 13 | 1 | — | 15 | ||||||||||||||||
Trade and other payables | 49 | 422 | 202 | — | 673 | ||||||||||||||||
Intercompany accounts | 3,941 | 537 | 91 | (4,569 | ) | — | |||||||||||||||
Income and other taxes payable | — | 12 | 5 | — | 17 | ||||||||||||||||
Long-term debt due within one year | — | 3 | 1 | — | 4 | ||||||||||||||||
Total current liabilities | 3,991 | 987 | 300 | (4,569 | ) | 709 | |||||||||||||||
Long-term debt | 1,494 | 4 | 12 | — | 1,510 | ||||||||||||||||
Intercompany long-term loans | 527 | 212 | — | (739 | ) | — | |||||||||||||||
Deferred income taxes and other | — | 891 | 44 | (12 | ) | 923 | |||||||||||||||
Other liabilities and deferred credits | 17 | 141 | 200 | (4 | ) | 354 | |||||||||||||||
Shareholders’ equity | 2,738 | 7,650 | 2,141 | (9,747 | ) | 2,782 | |||||||||||||||
Total liabilities and shareholders’ equity | 8,767 | 9,885 | 2,697 | (15,071 | ) | 6,278 | |||||||||||||||
Condensed Consolidating Statement of Cash Flows | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | For the six months ended June 30, 2014 | ||||||||||||||||||||
Parent | Guarantor | Non- | Consolidating | Consolidated | |||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Operating activities | |||||||||||||||||||||
Net earnings | 79 | 130 | 64 | (194 | ) | 79 | |||||||||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 19 | (113 | ) | 66 | 194 | 166 | |||||||||||||||
Cash flows provided from operating activities | 98 | 17 | 130 | — | 245 | ||||||||||||||||
Investing activities | |||||||||||||||||||||
Additions to property, plant and equipment | — | (71 | ) | (30 | ) | — | (101 | ) | |||||||||||||
Proceeds from disposals of property, plant and equipment | — | — | 1 | — | 1 | ||||||||||||||||
Acquisitions of business, net of cash acquired | — | — | (546 | ) | — | (546 | ) | ||||||||||||||
Cash flows used for investing activities | — | (71 | ) | (575 | ) | — | (646 | ) | |||||||||||||
Financing activities | |||||||||||||||||||||
Dividend payments | (36 | ) | — | — | — | (36 | ) | ||||||||||||||
Net change in bank indebtedness | (1 | ) | (7 | ) | 8 | — | — | ||||||||||||||
Change in revolving bank credit facility | (140 | ) | — | — | — | (140 | ) | ||||||||||||||
Repayment of long-term debt | — | (2 | ) | (1 | ) | — | (3 | ) | |||||||||||||
Proceeds from receivable securitization facilities | — | — | 90 | — | 90 | ||||||||||||||||
Payments on receivable securitization facilities | — | — | (84 | ) | (84 | ) | |||||||||||||||
Increase in long-term advances to related parties | — | 47 | 310 | (357 | ) | — | |||||||||||||||
Decrease in long-term advances to related parties | (357 | ) | — | — | 357 | — | |||||||||||||||
Other | 3 | — | 1 | — | 4 | ||||||||||||||||
Cash flows (used for) provided from financing activities | (531 | ) | 38 | 324 | — | (169 | ) | ||||||||||||||
Net decrease in cash and cash equivalents | (433 | ) | (16 | ) | (121 | ) | — | (570 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 439 | 22 | 194 | — | 655 | ||||||||||||||||
Cash and cash equivalents at end of period | 6 | 6 | 73 | — | 85 | ||||||||||||||||
For the six months ended June 30, 2013 | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Operating activities | |||||||||||||||||||||
Net (loss) earnings | (1 | ) | 45 | (7 | ) | (38 | ) | (1 | ) | ||||||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 179 | (27 | ) | (6 | ) | 38 | 184 | ||||||||||||||
Cash flows provided from (used for) operating activities | 178 | 18 | (13 | ) | — | 183 | |||||||||||||||
Investing activities | |||||||||||||||||||||
Additions to property, plant and equipment | — | (75 | ) | (43 | ) | — | (118 | ) | |||||||||||||
Proceeds from disposals of property, plant and equipment | — | 10 | — | — | 10 | ||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | (7 | ) | (4 | ) | — | (11 | ) | |||||||||||||
Investment in joint venture | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Cash flows used for investing activities | — | (72 | ) | (48 | ) | — | (120 | ) | |||||||||||||
Financing activities | |||||||||||||||||||||
Dividend payments | (31 | ) | — | — | — | (31 | ) | ||||||||||||||
Net change in bank indebtedness | — | (17 | ) | — | — | (17 | ) | ||||||||||||||
Repayment of long-term debt | (71 | ) | (25 | ) | (1 | ) | — | (97 | ) | ||||||||||||
Stock repurchase | (147 | ) | — | — | — | (147 | ) | ||||||||||||||
Increase in long-term advances to related parties | 24 | 26 | — | (50 | ) | — | |||||||||||||||
Decrease in long-term advances to related parties | — | — | (50 | ) | 50 | — | |||||||||||||||
Other | 3 | (2 | ) | — | — | 1 | |||||||||||||||
Cash flows used for financing activities | (222 | ) | (18 | ) | (51 | ) | — | (291 | ) | ||||||||||||
Net decrease in cash and cash equivalents | (44 | ) | (72 | ) | (112 | ) | — | (228 | ) | ||||||||||||
Impact of foreign exchange on cash | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 275 | 72 | 314 | — | 661 | ||||||||||||||||
Cash and cash equivalents at end of period | 231 | — | 201 | — | 432 | ||||||||||||||||
Acquisition_of_Business_Additi
Acquisition of Business - Additional Information (Detail) | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jan. 02, 2014 | Jan. 02, 2014 | Jun. 30, 2014 | Jan. 02, 2014 | Jun. 01, 2013 |
USD ($) | USD ($) | Laboratorios Indas [Member] | Laboratorios Indas [Member] | Laboratorios Indas [Member] | Laboratorios Indas [Member] | Xerox [Member] | |
USD ($) | EUR (€) | USD ($) | |||||
Employees | |||||||
Facility | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Acquisition completion date | ' | ' | ' | ' | 2-Jan-14 | ' | ' |
Acquisition percentage | ' | ' | ' | ' | ' | 100.00% | ' |
Acquisition of business, number of employees | ' | ' | 440 | 440 | ' | ' | ' |
Number of facilities | ' | ' | 2 | 2 | ' | ' | ' |
Purchase price | $546 | $11 | $546 | € 399 | ' | ' | ' |
Cash acquired in acquisition | ' | ' | 46 | 34 | ' | ' | ' |
Cash portion of purchase price | ' | ' | ' | ' | ' | ' | $7 |
Acquisition_of_Business_Fair_V
Acquisition of Business - Fair Value of Assets Acquired - Laboratorios Indas (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jan. 02, 2014 | Jan. 02, 2014 | Jan. 02, 2014 | Jan. 02, 2014 |
In Millions, unless otherwise specified | Laboratorios Indas [Member] | Laboratorios Indas [Member] | Laboratorios Indas [Member] | Laboratorios Indas [Member] | ||
Trade Names [Member] | Catalog Rights [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Receivables | ' | ' | $101 | ' | ' | ' |
Inventory | ' | ' | 28 | ' | ' | ' |
Income and other taxes receivable | ' | ' | 3 | ' | ' | ' |
Property, plant and equipment | ' | ' | 72 | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | 252 | 81 | 29 | 142 |
Goodwill (NOTE 10) | 655 | 369 | 286 | ' | ' | ' |
Deferred income tax assets | ' | ' | 17 | ' | ' | ' |
Total assets | ' | ' | 759 | ' | ' | ' |
Less: Liabilities | ' | ' | ' | ' | ' | ' |
Trade and other payables | ' | ' | 71 | ' | ' | ' |
Income and other taxes payable | ' | ' | 3 | ' | ' | ' |
Long-term debt (including short-term portion) | ' | ' | 42 | ' | ' | ' |
Deferred income tax liabilities | ' | ' | 96 | ' | ' | ' |
Other liabilities and deferred credits | ' | ' | 1 | ' | ' | ' |
Total liabilities | ' | ' | 213 | ' | ' | ' |
Fair value of assets acquired at the date of acquisition | ' | ' | $546 | ' | ' | ' |
Acquisition_of_Business_Fair_V1
Acquisition of Business - Fair Value of Assets Acquired - Xerox (Detail) (Xerox [Member], USD $) | Jun. 01, 2013 |
In Millions, unless otherwise specified | |
Business Acquisition [Line Items] | ' |
Inventory | $4 |
Intangible assets | ' |
Finite lived intangible assets | 7 |
Total assets | 11 |
Fair value of assets acquired at the date of acquisition | 11 |
License Rights [Member] | ' |
Intangible assets | ' |
Finite lived intangible assets | 6 |
Customer Relationships [Member] | ' |
Intangible assets | ' |
Finite lived intangible assets | $1 |
Acquisition_of_Business_Fair_V2
Acquisition of Business - Fair Value of Assets Acquired - Xerox (Parenthetical) (Detail) (Xerox [Member], Customer Relationships [Member]) | 6 Months Ended |
Jun. 30, 2014 | |
Xerox [Member] | Customer Relationships [Member] | ' |
Business Acquisition [Line Items] | ' |
Useful life of the Customer relationships acquired | '20 years |
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities and Fair Value Measurement - Additional Information (Detail) (USD $) | 6 Months Ended | 12 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Customer | Customer | Canadian Subsidiary [Member] | Swedish Subsidiary [Member] | Spanish Subsidiary [Member] | Forecasted Natural Gas and Oil Purchases [Member] | Natural Gas Derivative Contracts [Member] | Natural Gas Derivative Contracts [Member] | Natural Gas Derivative Contracts [Member] | Natural Gas Derivative Contracts [Member] | Foreign Currency Investment [Member] | Currency Derivatives [Member] | Currency Derivatives [Member] | Currency Derivatives [Member] | Currency Derivatives [Member] | |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of receivables a single customer represents | 10.00% | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of major customers | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables from major customers | $69 | $73 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Length of time current hedges cover | ' | ' | '24 months | '12 months | '12 months | '42 months | ' | ' | ' | ' | '3 years | ' | ' | ' | ' |
Earnings hedge ineffectiveness | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | ' | 0 | 0 | 0 | 0 |
Gain recognized in Other comprehensive income (loss) on derivatives (effective portion) | ' | ' | ' | ' | ' | ' | ' | ' | $3 | ' | ' | ' | ' | $6 | ' |
Recognition of OCI in cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | '42 months | ' | ' | ' | ' | '21 months | ' |
Derivatives_and_Hedging_Activi3
Derivatives and Hedging Activities and Fair Value Measurement - Derivative Financial Instruments for Natural Gas Contracts Outstanding (Detail) (Natural Gas Derivative Contracts [Member], USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
MMBTU | |
Natural Gas Derivative Contracts [Member] | ' |
Derivative [Line Items] | ' |
Notional contractual quantity under derivative contracts | 20,400,000 |
Notional contractual value under derivative contracts | $85 |
Percentage of forecasted purchases under derivative contracts for 2014 | 53.00% |
Percentage of forecasted purchases under derivative contracts for 2015 | 45.00% |
Percentage of forecasted purchases under derivative contracts for 2016 | 32.00% |
Percentage of forecasted purchases under derivative contracts for 2017 | 10.00% |
Derivatives_and_Hedging_Activi4
Derivatives and Hedging Activities and Fair Value Measurement - Currency Values under Contracts Pursuant to Currency Derivatives Outstanding (Detail) (Long [Member]) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | Currency Derivatives Purchased [Member] | Currency Derivatives Purchased [Member] | Currency Derivatives Purchased [Member] | Currency Derivatives Purchased [Member] | Currency Derivatives Purchased [Member] | Currency Derivatives Purchased [Member] | Currency Derivatives Purchased [Member] | Currency Derivatives Purchased [Member] | Currency Derivatives Purchased [Member] | Currency Derivatives Sold [Member] | Currency Derivatives Sold [Member] | Currency Derivatives Sold [Member] | Currency Derivatives Sold [Member] | Currency Derivatives Sold [Member] | Currency Derivatives Sold [Member] | Currency Derivatives Sold [Member] | Currency Derivatives Sold [Member] | Currency Derivatives Sold [Member] |
USD ($) | CAD | GBP (£) | CDN Denominated Forecasts for 2014 [Member] | USD Denominated Forecasts for 2014 [Member] | GBP Denominated Forecasts for 2014 [Member] | CDN Denominated Forecasts for 2015 [Member] | USD Denominated Forecasts For 2015 [Member] | GBP Denominated Forecasts For 2015 [Member] | USD ($) | CAD | GBP (£) | CDN Denominated Forecasts for 2014 [Member] | USD Denominated Forecasts for 2014 [Member] | GBP Denominated Forecasts for 2014 [Member] | CDN Denominated Forecasts for 2015 [Member] | USD Denominated Forecasts For 2015 [Member] | GBP Denominated Forecasts For 2015 [Member] | |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional contractual value | $45 | 490 | £ 16 | ' | ' | ' | ' | ' | ' | $45 | 490 | £ 16 | ' | ' | ' | ' | ' | ' |
Percentage of forecasted net exposures under contracts | ' | ' | ' | 53.00% | 68.00% | 85.00% | 31.00% | 36.00% | 40.00% | ' | ' | ' | 53.00% | 68.00% | 85.00% | 31.00% | 36.00% | 40.00% |
Derivatives_and_Hedging_Activi5
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Total Assets | $14 | $6 |
Total Liabilities | 5 | 11 |
Other Assets [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Asset backed notes | 7 | 6 |
Long-Term Debt [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Long-term debt | 1,611 | 1,620 |
Currency Derivatives [Member] | Prepaid Expenses [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | 10 | 3 |
Currency Derivatives [Member] | Trade and Other Payables [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | 4 | 10 |
Natural Gas Swap Contracts [Member] | Prepaid Expenses [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | 3 | 2 |
Natural Gas Swap Contracts [Member] | Intangible Assets and Deferred Charges [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | 1 | 1 |
Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | 1 | ' |
Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | ' | 1 |
Fair Value, Inputs, Level 1 [Member] | Long-Term Debt [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Long-term debt | 1,611 | 1,620 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | 14 | 6 |
Total Liabilities | 5 | 11 |
Fair Value, Inputs, Level 2 [Member] | Other Assets [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Asset backed notes | 6 | 5 |
Fair Value, Inputs, Level 2 [Member] | Currency Derivatives [Member] | Prepaid Expenses [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | 10 | 3 |
Fair Value, Inputs, Level 2 [Member] | Currency Derivatives [Member] | Trade and Other Payables [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | 4 | 10 |
Fair Value, Inputs, Level 2 [Member] | Natural Gas Swap Contracts [Member] | Prepaid Expenses [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | 3 | 2 |
Fair Value, Inputs, Level 2 [Member] | Natural Gas Swap Contracts [Member] | Intangible Assets and Deferred Charges [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | 1 | 1 |
Fair Value, Inputs, Level 2 [Member] | Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | 1 | ' |
Fair Value, Inputs, Level 2 [Member] | Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | ' | 1 |
Fair Value, Inputs, Level 3 [Member] | Other Assets [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Asset backed notes | $1 | $1 |
Derivatives_and_Hedging_Activi6
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Parenthetical) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ' |
The carrying value of the Company's long-term debt | $1,417 | $1,514 |
Derivatives_and_Hedging_Activi7
Derivatives and Hedging Activities and Fair Value Measurement - Beginning and Ending Balances Measured at Fair Value on Recurring Basis (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' |
Balance | $1 |
Net unrealized gains included in earnings | 0 |
Transfer out of Level 3 | 0 |
Balance | $1 |
Earnings_Loss_Per_Common_Share2
Earnings (Loss) Per Common Share - Additional Information (Detail) | 0 Months Ended | 6 Months Ended |
Apr. 30, 2014 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ' | ' |
Stock split, description | ' | 'On April 30, 2014, the Company's Board of Directors approved a 2-for-1 split of its common stock to be effected through a stock dividend. Shareholders of record on June 10, 2014 were entitled to receive one additional share for every share they owned on that date. |
Stock split ratio | 2 | ' |
Earnings_Loss_Per_Common_Share3
Earnings (Loss) Per Common Share - Reconciliation Between Basic and Diluted Earnings Loss Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net earnings (loss) | $40 | ($46) | $79 | ($1) |
Weighted average number of common and exchangeable shares outstanding (millions) | 65 | 66.9 | 64.9 | 68.2 |
Effect of dilutive securities (millions) | 0.1 | ' | 0.1 | ' |
Weighted average number of diluted common and exchangeable shares outstanding (millions) | 65.1 | 66.9 | 65 | 68.2 |
Basic net earnings (loss) per common share (in dollars) | $0.62 | ($0.69) | $1.22 | ($0.01) |
Diluted net earnings (loss) per common share (in dollars) | $0.61 | ($0.69) | $1.22 | ($0.01) |
Earnings_Loss_Per_Common_Share4
Earnings (Loss) Per Common Share - Securities that Could Potentially Dilute Basic Earnings Per Common Share in Future (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Restricted Stock Units [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share amount | ' | 141,632 | ' | 141,632 |
Performance Share Units [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share amount | ' | 42,378 | ' | 42,378 |
Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share amount | 366,274 | 100,552 | 337,272 | 145,160 |
Pension_Plans_and_Other_PostRe2
Pension Plans and Other Post-Retirement Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' | ' |
Pension expense | $7 | $8 | $15 | $16 |
Pension Plans [Member] | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' | ' |
Plan contributions | 9 | 7 | 19 | 14 |
Other Post-Retirement Benefit Plans [Member] | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' | ' |
Plan contributions | $3 | $2 | $3 | $3 |
Pension_Plans_and_Other_PostRe3
Pension Plans and Other Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Pension Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $9 | $11 | $18 | $22 |
Interest expense | 20 | 18 | 40 | 37 |
Expected return on plan assets | -26 | -24 | -52 | -48 |
Amortization of net actuarial loss | 3 | 7 | 5 | 14 |
Settlement loss | ' | 13 | ' | 13 |
Amortization of prior year service costs | ' | 1 | 1 | 1 |
Net periodic benefit cost | 6 | 26 | 12 | 39 |
Other Post-Retirement Benefit Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 0 | ' | 1 | 1 |
Interest expense | 2 | 1 | 3 | 2 |
Expected return on plan assets | 0 | ' | ' | ' |
Amortization of net actuarial loss | 0 | 1 | ' | 1 |
Amortization of prior year service costs | 0 | ' | ' | ' |
Net periodic benefit cost | $2 | $2 | $4 | $4 |
Pension_Plans_and_Other_PostRe4
Pension Plans and Other Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans (Parenthetical) (Detail) (Pension Plans [Member], USD $) | 3 Months Ended | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Settlement loss | ' | $13 | $13 |
Big River [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Settlement loss | ' | 6 | 6 |
Dryden Mills [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Settlement loss | ' | $7 | $7 |
Other_Operating_Loss_Net_Compo
Other Operating Loss, Net - Components of Other Operating Loss, Net (Detail) | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 24, 2013 | Jun. 24, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | CAD | USD ($) | USD ($) | CAD | USD ($) | USD ($) | |
Other Income And Expenses [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Reversal of alternative fuel tax credits | ' | ' | $0 | ' | ' | ' | $26 |
Gain on sale of property, plant and equipment | ' | ' | 0 | ' | ' | ' | -10 |
Environmental provision | ' | ' | 0 | 1 | ' | ' | 2 |
Foreign exchange loss (gain) | ' | ' | 2 | -1 | ' | -1 | -2 |
Weston litigation | 49 | 50 | 0 | 49 | 50 | ' | 49 |
Other | ' | ' | 0 | ' | ' | 1 | 2 |
Other operating loss, net | ' | ' | $2 | $49 | ' | $0 | $67 |
Other_Operating_Loss_Net_Compo1
Other Operating Loss, Net - Components of Other Operating Loss, Net (Parenthetical) (Detail) | 0 Months Ended | 3 Months Ended | 6 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 24, 2013 | Jun. 24, 2013 | Mar. 22, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 22, 2013 |
USD ($) | CAD | USD ($) | USD ($) | USD ($) | CAD | USD ($) | USD ($) | |
Other Income And Expenses [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of businesses | ' | ' | $10 | ' | ' | ' | ' | ' |
Assets sold | ' | ' | 9 | ' | ' | ' | ' | ' |
Sale of environmental provision | ' | ' | 3 | ' | ' | ' | ' | ' |
Net book value of assets | ' | ' | ' | ' | ' | ' | ' | 2 |
Litigation settlement paid | $49 | 50 | ' | $0 | $49 | 50 | $49 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 24, 2013 | Jun. 24, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 |
USD ($) | CAD | USD ($) | USD ($) | CAD | USD ($) | USD ($) | Cellulosic Biofuel Producer Credit [Member] | Alternative Fuel Mixture Credit [Member] | |
USD ($) | USD ($) | ||||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax (benefit) expense | ' | ' | $13 | ($5) | ' | $28 | ($27) | ' | ' |
Current income tax expense (benefit) | ' | ' | 19 | -4 | ' | 34 | -27 | ' | ' |
Deferred income tax expense (benefit) | ' | ' | -6 | -1 | ' | -6 | ' | ' | ' |
Income tax paid, net of refunds | ' | ' | 20 | ' | ' | 19 | -9 | ' | ' |
Effective income tax rate | ' | ' | 25.00% | 10.00% | 10.00% | 26.00% | 100.00% | ' | ' |
Litigation settlement paid | 49 | 50 | 0 | 49 | 50 | ' | 49 | ' | ' |
Non-deductible litigation payments | ' | ' | ' | 38 | 39 | ' | ' | ' | ' |
Alternative Fuel Tax Credits | ' | ' | 0 | ' | ' | ' | 26 | ' | ' |
Income tax credits before tax | ' | ' | ' | ' | ' | ' | ' | 55 | ' |
Income tax credits after-tax | ' | ' | ' | ' | ' | ' | ' | 33 | ' |
Reduction in unrecognized tax benefits | ' | ' | ' | ' | ' | ' | ' | 8 | ' |
Gross unrecognized tax benefits | ' | ' | 198 | ' | ' | 198 | ' | ' | ' |
Deferred tax assets | ' | ' | ' | ' | ' | ' | ' | ' | 20 |
Recognition of tax benefits would impact the effective tax rate | ' | ' | $178 | ' | ' | $178 | ' | ' | ' |
Inventories_Components_of_Inve
Inventories - Components of Inventories (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Work in process and finished goods | $406 | $386 |
Raw materials | 122 | 102 |
Operating and maintenance supplies | 200 | 197 |
Total inventories | $728 | $685 |
Goodwill_Changes_in_Carrying_V
Goodwill - Changes in Carrying Value of Goodwill (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jan. 02, 2014 |
In Millions, unless otherwise specified | Laboratorios Indas [Member] | Laboratorios Indas [Member] | ||
Goodwill [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | $655 | $369 | ' | $286 |
Goodwill acquired during period | ' | ' | 286 | ' |
Balance at end of period | $655 | $369 | ' | $286 |
Intangible_Assets_Net_Componen
Intangible Assets, Net - Components of Intangible Assets (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets subject to amortization, Gross carrying amount | $445 | $302 |
Total, Gross carrying amount | 677 | 424 |
Accumulated amortization | -29 | -17 |
Intangible assets, Net | 416 | 285 |
Intangible assets, Net | 648 | 407 |
Catalog Rights [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets not subject to amortization | 29 | ' |
Intangible assets not subject to amortization, Net | 29 | ' |
License Rights [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets not subject to amortization | 6 | 6 |
Water Rights [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '40 years | ' |
Intangible assets subject to amortization, Gross carrying amount | 8 | 8 |
Accumulated amortization | -1 | -1 |
Intangible assets, Net | 7 | 7 |
Customer Relationships [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets subject to amortization, Gross carrying amount | 399 | 256 |
Accumulated amortization | -24 | -14 |
Intangible assets, Net | 375 | 242 |
Customer Relationships [Member] | Minimum [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '10 years | ' |
Customer Relationships [Member] | Maximum [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '40 years | ' |
Trade Names [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets not subject to amortization | 197 | 116 |
Intangible assets not subject to amortization, Net | 197 | 116 |
Technology [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets subject to amortization, Gross carrying amount | 8 | 8 |
Accumulated amortization | -2 | -1 |
Intangible assets, Net | 6 | 7 |
Technology [Member] | Minimum [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '7 years | ' |
Technology [Member] | Maximum [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '20 years | ' |
Non-Compete [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '9 years | ' |
Intangible assets subject to amortization, Gross carrying amount | 1 | 1 |
Intangible assets, Net | 1 | 1 |
License Rights [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '12 years | ' |
Intangible assets subject to amortization, Gross carrying amount | 29 | 29 |
Accumulated amortization | -2 | -1 |
Intangible assets, Net | 27 | 28 |
Intangible assets not subject to amortization, Net | $6 | $6 |
Intangible_Assets_Net_Addition
Intangible Assets, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization expense | $6 | $2 | $11 | $4 |
Intangible_Assets_Net_Amortiza
Intangible Assets, Net - Amortization Expense Related to Intangible Assets (Detail) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
Amortization expense related to intangible assets, 2014 | $21 |
Amortization expense related to intangible assets, 2015 | 21 |
Amortization expense related to intangible assets, 2016 | 21 |
Amortization expense related to intangible assets, 2017 | 21 |
Amortization expense related to intangible assets, 2018 | $21 |
Closure_and_Restructuring_Cost2
Closure and Restructuring Costs and Liability and Impairment and Write-Down of Property, Plant and Equipment - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 13, 2012 | Jul. 31, 2013 | Jun. 30, 2013 |
Pension Plans [Member] | Pension Plans [Member] | Pension Plans [Member] | Multiemployer Pension Plans [Member] | Multiemployer Pension Plans [Member] | Multiemployer Pension Plans [Member] | Pulp and Paper [Member] | Pulp and Paper [Member] | Pulp and Paper [Member] | Personal Care [Member] | Personal Care [Member] | Personal Care [Member] | Big River [Member] | Big River [Member] | Dryden Mills [Member] | Dryden Mills [Member] | Previous and Ongoing Closures [Member] | Previous and Ongoing Closures [Member] | Previous and Ongoing Closures [Member] | Previous and Ongoing Closures [Member] | Kamloops, British Columbia Pulp Facility [Member] | Kamloops, British Columbia Pulp Facility [Member] | Kamloops, British Columbia Pulp Facility [Member] | Ariva U.S. [Member] | Ariva U.S. [Member] | |||||
Pension Plans [Member] | Pension Plans [Member] | Pension Plans [Member] | Pension Plans [Member] | Closure of Paper Machine [Member] | Employees | ||||||||||||||||||||||||
Employees | |||||||||||||||||||||||||||||
T | |||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected withdrawal liability | ' | ' | ' | ' | ' | ' | ' | ' | $3 | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for the withdrawal liability | ' | ' | ' | ' | ' | ' | ' | 62 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement losses | ' | ' | ' | ' | ' | 13 | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 6 | 7 | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400 | ' |
Impairment and write-down of property, plant and equipment | 5 | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 |
Curtailment of manufacturing materials | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000 | ' | ' |
Number of employees affected due to curtailment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125 | ' | ' |
Accelerated depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' |
Severance and termination costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 1 | 2 | 1 | 1 | ' | ' | ' |
Inventory obsolescence | 1 | 0 | 1 | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' |
Other costs | 2 | 0 | 2 | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
Restructuring provision | ' | $3 | ' | $3 | ' | ' | ' | ' | ' | ' | ' | ' | $2 | ' | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closure_and_Restructuring_Cost3
Closure and Restructuring Costs and Liability and Impairment and Write-Down of Property, Plant and Equipment - Components of Closure and Restructuring Costs by Segment (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Severance and termination costs | $1 | $1 | ' |
Inventory obsolescence | -1 | 0 | -1 |
Pension settlement and withdrawal liability | 16 | 0 | 17 |
Other | 2 | 0 | 2 |
Closure and restructuring costs | 18 | 1 | 18 |
Pulp and Paper [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Severance and termination costs | -1 | ' | -2 |
Inventory obsolescence | -1 | ' | -1 |
Pension settlement and withdrawal liability | 10 | ' | 11 |
Other | 2 | ' | 2 |
Closure and restructuring costs | 10 | ' | 10 |
Personal Care [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Severance and termination costs | 2 | 1 | 2 |
Inventory obsolescence | 0 | 0 | 0 |
Pension settlement and withdrawal liability | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Closure and restructuring costs | 2 | 1 | 2 |
Corporate [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Severance and termination costs | 0 | ' | 0 |
Inventory obsolescence | 0 | ' | 0 |
Pension settlement and withdrawal liability | 6 | ' | 6 |
Other | 0 | ' | 0 |
Closure and restructuring costs | $6 | ' | $6 |
Closure_and_Restructuring_Cost4
Closure and Restructuring Costs and Liability and Impairment and Write-Down of Property, Plant and Equipment - Activity in Closure and Restructuring Liability (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Restructuring And Related Activities [Abstract] | ' |
Balance at beginning of period | $3 |
Additions | 1 |
Acquisition of business | 1 |
Payments | -2 |
Balance at end of period | $3 |
Changes_in_Accumulated_Other_C2
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||||||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Natural Gas Swap Contracts [Member] | Natural Gas Swap Contracts [Member] | Currency Derivatives [Member] | Currency Derivatives [Member] | Foreign Currency Items [Member] | Foreign Currency Items [Member] | Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Foreign Currency Items [Member] | Foreign Currency Items [Member] | Foreign Currency Items [Member] | Foreign Currency Items [Member] | |||||
Natural Gas Swap Contracts [Member] | Natural Gas Swap Contracts [Member] | Currency Derivatives [Member] | Currency Derivatives [Member] | Pension Plans [Member] | Pension Plans [Member] | Other Post-Retirement Benefit Plans [Member] | Other Post-Retirement Benefit Plans [Member] | Other Post-Retirement Benefit Plans [Member] | Other Post-Retirement Benefit Plans [Member] | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ($65) | ($128) | ' | ' | ' | ' | ' | ' | ' | $5 | ' | ' | ' | ' | ($210) | ($326) | ($7) | ($7) | ($15) | ($15) | $152 | $208 | ' | ' |
Other comprehensive (loss) income before reclassifications | ' | ' | -7 | -68 | 4 | -1 | 1 | -7 | -12 | -60 | 5 | -8 | 4 | -1 | 1 | -7 | ' | ' | ' | ' | ' | ' | -12 | -60 | -12 | -60 |
Amounts reclassified from accumulated other comprehensive loss | ' | ' | 8 | 22 | ' | ' | ' | ' | ' | ' | 3 | 1 | ' | ' | ' | ' | 5 | 21 | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income (loss) | 36 | -26 | 1 | -46 | ' | ' | ' | ' | ' | ' | 8 | -7 | ' | ' | ' | ' | 5 | 21 | ' | ' | ' | ' | -12 | -60 | ' | ' |
Ending balance | ($64) | ($174) | ($64) | ($174) | ' | ' | ' | ' | ' | ' | $8 | ($2) | ' | ' | ' | ' | ($205) | ($305) | ($7) | ($7) | ($15) | ($15) | $140 | $148 | ' | ' |
Changes_in_Accumulated_Other_C3
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cost of Sales | $1,108 | $1,082 | $2,211 | $2,164 |
Earnings (loss) before income taxes and equity loss | 53 | -51 | 107 | -27 |
Tax benefit | 13 | -5 | 28 | -27 |
Net (loss) earnings | 40 | -46 | 79 | -1 |
Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Earnings (loss) before income taxes and equity loss | 2 | ' | 6 | 2 |
Tax benefit | -1 | ' | -3 | -1 |
Net (loss) earnings | 1 | ' | 3 | 1 |
Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Natural Gas Swap Contracts [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cost of Sales | -1 | ' | -3 | 2 |
Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Currency Derivatives [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cost of Sales | 3 | ' | 9 | ' |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Amortization of net actuarial loss and prior year service cost | 3 | 22 | 6 | 29 |
Tax benefit | ' | -6 | -1 | -8 |
Net (loss) earnings | $3 | $16 | $5 | $21 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 6 Months Ended | 49 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | ||||||||
Apr. 30, 2014 | Apr. 15, 2014 | Feb. 18, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Apr. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | Jun. 30, 2014 | Jul. 30, 2014 | Jul. 15, 2014 | Jun. 02, 2014 | Jun. 30, 2014 | |
Additional paid-in capital [Member] | Subsequent Events [Member] | Subsequent Events [Member] | Domtar (Canada) Paper Company, LLC [Member] | Domtar (Canada) Paper Company, LLC [Member] | ||||||||||
Shareholders' Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend per share | $0.28 | ' | $0.28 | $0.38 | ' | ' | ' | ' | ' | ' | $0.38 | ' | ' | ' |
Dividends paid | ' | $18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $24,000,000 | ' | ' |
Declared date | ' | ' | 18-Feb-14 | ' | ' | ' | ' | ' | ' | ' | 30-Jul-14 | ' | ' | ' |
Record date | 2-Jul-14 | ' | 14-Mar-14 | ' | ' | ' | ' | ' | ' | ' | 2-Oct-14 | ' | ' | ' |
Payment date | 15-Jul-14 | ' | 15-Apr-14 | ' | ' | ' | ' | ' | ' | ' | 15-Oct-14 | ' | ' | ' |
Stock split, description | ' | ' | ' | 'On April 30, 2014, the Company's Board of Directors approved a 2-for-1 split of its common stock to be effected through a stock dividend. Shareholders of record on June 10, 2014 were entitled to receive one additional share for every share they owned on that date. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock split ratio | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock outstanding | ' | ' | ' | 32,500,000 | ' | 32,500,000 | 65,000,000 | ' | ' | ' | ' | ' | ' | ' |
Increase of dividend per share on a pre-split basis | ' | ' | ' | ' | ' | ' | $0.20 | ' | ' | ' | ' | ' | ' | ' |
Percentage of increase in dividend on a pre-split basis | 36.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program authorized amount | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' |
Stock repurchased, shares | ' | ' | ' | 0 | 3,952,952 | 22,341,012 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchased, average price | ' | ' | ' | ' | $37.13 | $39.24 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchased, value | ' | ' | ' | ' | 147,000,000 | 877,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury stock, par value | ' | ' | ' | $0.01 | ' | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' |
Exchangeable shares, exchange ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 |
Redemption date of outstanding shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2-Jun-14 |
Number of shares received for each exchangeable share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Redemption of exchangeable shares | ' | ' | ' | $0 | ' | ' | ' | ' | ' | $32,000,000 | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Commitments And Contingencies Disclosure [Abstract] | ' |
Balance at beginning of period | $67 |
Additions | 1 |
Environmental spending | -4 |
Balance at end of period | $64 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Schedule Of Commitments And Contingencies [Line Items] | ' |
Percentage of reduction in greenhouse gas | 17.00% |
Minimum [Member] | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' |
Obligations under federal or provincial legislations | 20,000,000 |
Maximum [Member] | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' |
Obligations under federal or provincial legislations | 30,000,000 |
Segment_Disclosures_Additional
Segment Disclosures - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 2 |
Segment_Disclosures_Analysis_a
Segment Disclosures - Analysis and Reconciliation of Segment Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | $1,385 | $1,312 | $2,779 | $2,657 |
Depreciation and amortization and impairment and write-down of property, plant and equipment | 96 | 93 | 195 | 188 |
Impairment and write-down of property, plant and equipment | ' | 5 | ' | 15 |
Consolidated depreciation and amortization and impairment and write-down of property, plant and equipment | 96 | 98 | 195 | 203 |
Consolidated operating income (loss) | 79 | -30 | 158 | 19 |
Interest expense, net | 26 | 21 | 51 | 46 |
Earnings (loss) before income taxes and equity loss | 53 | -51 | 107 | -27 |
Income tax expense (benefit) | 13 | -5 | 28 | -27 |
Equity loss, net of taxes | ' | ' | ' | 1 |
Net earnings (loss) | 40 | -46 | 79 | -1 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 1,394 | 1,316 | 2,795 | 2,665 |
Depreciation and amortization and impairment and write-down of property, plant and equipment | 96 | 93 | 195 | 188 |
Operating Segments [Member] | Pulp and Paper [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 1,160 | 1,208 | 2,328 | 2,446 |
Depreciation and amortization and impairment and write-down of property, plant and equipment | 79 | 87 | 162 | 176 |
Impairment and write-down of property, plant and equipment | ' | 5 | ' | 15 |
Consolidated operating income (loss) | 69 | 16 | 138 | 54 |
Operating Segments [Member] | Personal Care [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 234 | 108 | 467 | 219 |
Depreciation and amortization and impairment and write-down of property, plant and equipment | 17 | 6 | 33 | 12 |
Consolidated operating income (loss) | 14 | 10 | 29 | 23 |
Intersegment Sales [Member] | Pulp and Paper [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | -9 | -4 | -16 | -8 |
Corporate [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Consolidated operating income (loss) | ($4) | ($56) | ($9) | ($58) |
Supplemental_Guarantor_Financi2
Supplemental Guarantor Financial Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Domtar (Canada) Paper Company, LLC [Member] | ' |
Supplemental Guarantor Financial Information [Line Items] | ' |
Ownership percentage | 100.00% |
Guarantor Subsidiaries [Member] | ' |
Supplemental Guarantor Financial Information [Line Items] | ' |
Ownership percentage | 100.00% |
Non-Guarantor Subsidiaries [Member] | ' |
Supplemental Guarantor Financial Information [Line Items] | ' |
Ownership percentage | 100.00% |
Supplemental_Guarantor_Financi3
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of (Loss) Earnings and Comprehensive (Loss) Income (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Supplemental Guarantor Financial Information [Line Items] | ' | ' | ' | ' |
Sales | $1,385 | $1,312 | $2,779 | $2,657 |
Operating expenses | ' | ' | ' | ' |
Cost of sales, excluding depreciation and amortization | 1,108 | 1,082 | 2,211 | 2,164 |
Depreciation and amortization | 96 | 93 | 195 | 188 |
Selling, general and administrative | 100 | 95 | 214 | 186 |
Impairment and write-down of property, plant and equipment | ' | 5 | ' | 15 |
Closure and restructuring costs | ' | 18 | 1 | 18 |
Other operating (loss) income, net | 2 | 49 | 0 | 67 |
Operating expenses | 1,306 | 1,342 | 2,621 | 2,638 |
Operating (loss) income | 79 | -30 | 158 | 19 |
Interest expense (income), net | 26 | 21 | 51 | 46 |
(Loss) earnings before income taxes and equity loss | 53 | -51 | 107 | -27 |
Income tax (benefit) expense | 13 | -5 | 28 | -27 |
Equity loss, net of taxes | ' | ' | ' | 1 |
Net (loss) earnings | 40 | -46 | 79 | -1 |
Other comprehensive income (loss) | 36 | -26 | 1 | -46 |
Comprehensive income (loss) | 76 | -72 | 80 | -47 |
Consolidating Adjustments [Member] | ' | ' | ' | ' |
Supplemental Guarantor Financial Information [Line Items] | ' | ' | ' | ' |
Sales | -276 | -261 | -545 | -515 |
Operating expenses | ' | ' | ' | ' |
Cost of sales, excluding depreciation and amortization | -276 | -261 | -545 | -515 |
Operating expenses | -276 | -261 | -545 | -515 |
Share in earnings of equity accounted investees | -82 | 66 | -194 | -38 |
Net (loss) earnings | -82 | 66 | -194 | -38 |
Comprehensive income (loss) | -82 | 66 | -194 | -38 |
Parent [Member] | ' | ' | ' | ' |
Operating expenses | ' | ' | ' | ' |
Selling, general and administrative | 5 | 7 | 18 | 13 |
Operating expenses | 5 | 7 | 18 | 13 |
Operating (loss) income | -5 | -7 | -18 | -13 |
Interest expense (income), net | 25 | 22 | 50 | 49 |
(Loss) earnings before income taxes and equity loss | -30 | -29 | -68 | -62 |
Income tax (benefit) expense | -7 | -7 | -17 | -16 |
Share in earnings of equity accounted investees | 63 | -24 | 130 | 45 |
Net (loss) earnings | 40 | -46 | 79 | -1 |
Other comprehensive income (loss) | ' | -3 | 1 | 1 |
Comprehensive income (loss) | 40 | -49 | 80 | ' |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Supplemental Guarantor Financial Information [Line Items] | ' | ' | ' | ' |
Sales | 1,091 | 1,081 | 2,200 | 2,188 |
Operating expenses | ' | ' | ' | ' |
Cost of sales, excluding depreciation and amortization | 916 | 909 | 1,849 | 1,851 |
Depreciation and amortization | 65 | 67 | 133 | 135 |
Selling, general and administrative | 42 | 62 | 115 | 135 |
Impairment and write-down of property, plant and equipment | ' | 5 | ' | 5 |
Closure and restructuring costs | ' | 5 | 1 | 6 |
Other operating (loss) income, net | 2 | 2 | 1 | 20 |
Operating expenses | 1,025 | 1,050 | 2,099 | 2,152 |
Operating (loss) income | 66 | 31 | 101 | 36 |
Interest expense (income), net | 7 | 5 | 12 | 9 |
(Loss) earnings before income taxes and equity loss | 59 | 26 | 89 | 27 |
Income tax (benefit) expense | 15 | 8 | 23 | -25 |
Share in earnings of equity accounted investees | 19 | -42 | 64 | -7 |
Net (loss) earnings | 63 | -24 | 130 | 45 |
Other comprehensive income (loss) | 9 | -4 | 8 | -4 |
Comprehensive income (loss) | 72 | -28 | 138 | 41 |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Supplemental Guarantor Financial Information [Line Items] | ' | ' | ' | ' |
Sales | 570 | 492 | 1,124 | 984 |
Operating expenses | ' | ' | ' | ' |
Cost of sales, excluding depreciation and amortization | 468 | 434 | 907 | 828 |
Depreciation and amortization | 31 | 26 | 62 | 53 |
Selling, general and administrative | 53 | 26 | 81 | 38 |
Impairment and write-down of property, plant and equipment | ' | ' | ' | 10 |
Closure and restructuring costs | ' | 13 | ' | 12 |
Other operating (loss) income, net | ' | 47 | -1 | 47 |
Operating expenses | 552 | 546 | 1,049 | 988 |
Operating (loss) income | 18 | -54 | 75 | -4 |
Interest expense (income), net | -6 | -6 | -11 | -12 |
(Loss) earnings before income taxes and equity loss | 24 | -48 | 86 | 8 |
Income tax (benefit) expense | 5 | -6 | 22 | 14 |
Equity loss, net of taxes | ' | ' | ' | 1 |
Net (loss) earnings | 19 | -42 | 64 | -7 |
Other comprehensive income (loss) | 27 | -19 | -8 | -43 |
Comprehensive income (loss) | $46 | ($61) | $56 | ($50) |
Supplemental_Guarantor_Financi4
Supplemental Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | $85 | $655 | $432 | $661 |
Receivables | 675 | 601 | ' | ' |
Inventories | 728 | 685 | ' | ' |
Prepaid expenses | 37 | 23 | ' | ' |
Income and other taxes receivable | 54 | 61 | ' | ' |
Deferred income taxes | 46 | 52 | ' | ' |
Total current assets | 1,625 | 2,077 | ' | ' |
Property, plant and equipment, at cost | 9,032 | 8,883 | ' | ' |
Accumulated depreciation | -5,766 | -5,594 | ' | ' |
Net property, plant and equipment | 3,266 | 3,289 | ' | ' |
Goodwill | 655 | 369 | ' | ' |
Intangible assets, net of amortization | 648 | 407 | ' | ' |
Other assets | 145 | 136 | ' | ' |
Total assets | 6,339 | 6,278 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Bank indebtedness | 15 | 15 | ' | ' |
Trade and other payables | 702 | 673 | ' | ' |
Income and other taxes payable | 32 | 17 | ' | ' |
Long-term debt due within one year | 7 | 4 | ' | ' |
Total current liabilities | 756 | 709 | ' | ' |
Long-term debt | 1,410 | 1,510 | ' | ' |
Deferred income taxes and other | 998 | 923 | ' | ' |
Other liabilities and deferred credits | 349 | 354 | ' | ' |
Shareholders' equity | 2,826 | 2,782 | ' | ' |
Total liabilities and shareholders' equity | 6,339 | 6,278 | ' | ' |
Consolidating Adjustments [Member] | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Income and other taxes receivable | -43 | ' | ' | ' |
Intercompany accounts | -5,087 | -4,569 | ' | ' |
Total current assets | -5,130 | -4,569 | ' | ' |
Investments in affiliates | -10,016 | -9,747 | ' | ' |
Intercompany advances | -413 | -739 | ' | ' |
Other assets | -44 | -16 | ' | ' |
Total assets | -15,603 | -15,071 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Intercompany accounts | -5,087 | -4,569 | ' | ' |
Income and other taxes payable | -43 | ' | ' | ' |
Total current liabilities | -5,130 | -4,569 | ' | ' |
Intercompany long-term loans | -413 | -739 | ' | ' |
Deferred income taxes and other | -44 | -12 | ' | ' |
Other liabilities and deferred credits | ' | -4 | ' | ' |
Shareholders' equity | -10,016 | -9,747 | ' | ' |
Total liabilities and shareholders' equity | -15,603 | -15,071 | ' | ' |
Parent [Member] | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 6 | 439 | 231 | 275 |
Prepaid expenses | 14 | 7 | ' | ' |
Income and other taxes receivable | 85 | 47 | ' | ' |
Intercompany accounts | 773 | 590 | ' | ' |
Total current assets | 878 | 1,083 | ' | ' |
Investments in affiliates | 7,824 | 7,650 | ' | ' |
Intercompany advances | 6 | 6 | ' | ' |
Other assets | 26 | 28 | ' | ' |
Total assets | 8,734 | 8,767 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Bank indebtedness | ' | 1 | ' | ' |
Trade and other payables | 58 | 49 | ' | ' |
Intercompany accounts | 4,295 | 3,941 | ' | ' |
Income and other taxes payable | 3 | ' | ' | ' |
Total current liabilities | 4,356 | 3,991 | ' | ' |
Long-term debt | 1,354 | 1,494 | ' | ' |
Intercompany long-term loans | 185 | 527 | ' | ' |
Other liabilities and deferred credits | 13 | 17 | ' | ' |
Shareholders' equity | 2,826 | 2,738 | ' | ' |
Total liabilities and shareholders' equity | 8,734 | 8,767 | ' | ' |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 6 | 22 | ' | 72 |
Receivables | 348 | 402 | ' | ' |
Inventories | 503 | 480 | ' | ' |
Prepaid expenses | 10 | 7 | ' | ' |
Income and other taxes receivable | ' | 1 | ' | ' |
Intercompany accounts | 4,297 | 3,951 | ' | ' |
Deferred income taxes | 25 | 31 | ' | ' |
Total current assets | 5,189 | 4,894 | ' | ' |
Property, plant and equipment, at cost | 6,036 | 5,968 | ' | ' |
Accumulated depreciation | -3,863 | -3,734 | ' | ' |
Net property, plant and equipment | 2,173 | 2,234 | ' | ' |
Goodwill | 296 | 296 | ' | ' |
Intangible assets, net of amortization | 268 | 273 | ' | ' |
Investments in affiliates | 2,192 | 2,097 | ' | ' |
Intercompany advances | 79 | 79 | ' | ' |
Other assets | 11 | 12 | ' | ' |
Total assets | 10,208 | 9,885 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Bank indebtedness | 6 | 13 | ' | ' |
Trade and other payables | 380 | 422 | ' | ' |
Intercompany accounts | 697 | 537 | ' | ' |
Income and other taxes payable | 54 | 12 | ' | ' |
Long-term debt due within one year | 2 | 3 | ' | ' |
Total current liabilities | 1,139 | 987 | ' | ' |
Long-term debt | 3 | 4 | ' | ' |
Intercompany long-term loans | 228 | 212 | ' | ' |
Deferred income taxes and other | 874 | 891 | ' | ' |
Other liabilities and deferred credits | 140 | 141 | ' | ' |
Shareholders' equity | 7,824 | 7,650 | ' | ' |
Total liabilities and shareholders' equity | 10,208 | 9,885 | ' | ' |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 73 | 194 | 201 | 314 |
Receivables | 327 | 199 | ' | ' |
Inventories | 225 | 205 | ' | ' |
Prepaid expenses | 13 | 9 | ' | ' |
Income and other taxes receivable | 12 | 13 | ' | ' |
Intercompany accounts | 17 | 28 | ' | ' |
Deferred income taxes | 21 | 21 | ' | ' |
Total current assets | 688 | 669 | ' | ' |
Property, plant and equipment, at cost | 2,996 | 2,915 | ' | ' |
Accumulated depreciation | -1,903 | -1,860 | ' | ' |
Net property, plant and equipment | 1,093 | 1,055 | ' | ' |
Goodwill | 359 | 73 | ' | ' |
Intangible assets, net of amortization | 380 | 134 | ' | ' |
Intercompany advances | 328 | 654 | ' | ' |
Other assets | 152 | 112 | ' | ' |
Total assets | 3,000 | 2,697 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Bank indebtedness | 9 | 1 | ' | ' |
Trade and other payables | 264 | 202 | ' | ' |
Intercompany accounts | 95 | 91 | ' | ' |
Income and other taxes payable | 18 | 5 | ' | ' |
Long-term debt due within one year | 5 | 1 | ' | ' |
Total current liabilities | 391 | 300 | ' | ' |
Long-term debt | 53 | 12 | ' | ' |
Deferred income taxes and other | 168 | 44 | ' | ' |
Other liabilities and deferred credits | 196 | 200 | ' | ' |
Shareholders' equity | 2,192 | 2,141 | ' | ' |
Total liabilities and shareholders' equity | $3,000 | $2,697 | ' | ' |
Supplemental_Guarantor_Financi5
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities | ' | ' |
Net (loss) earnings | $79 | ($1) |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 166 | 184 |
Cash flows provided from operating activities | 245 | 183 |
Investing activities | ' | ' |
Additions to property, plant and equipment | -101 | -118 |
Proceeds from disposals of property, plant and equipment | 1 | 10 |
Acquisitions of businesses, net of cash acquired | -546 | -11 |
Investment in joint venture | ' | -1 |
Cash flows used for investing activities | -646 | -120 |
Financing activities | ' | ' |
Dividend payments | -36 | -31 |
Net change in bank indebtedness | ' | -17 |
Change in revolving bank credit facility | -140 | ' |
Repayment of long-term debt | -3 | -97 |
Proceeds from receivable securitization facilities | 90 | ' |
Stock repurchase | ' | -147 |
Payments on receivable securitization facilities | -84 | ' |
Other | 4 | 1 |
Cash flows (used for) provided from financing activities | -169 | -291 |
Net decrease in cash and cash equivalents | -570 | -228 |
Impact of foreign exchange on cash | ' | -1 |
Cash and cash equivalents at beginning of period | 655 | 661 |
Cash and cash equivalents at end of period | 85 | 432 |
Consolidating Adjustments [Member] | ' | ' |
Operating activities | ' | ' |
Net (loss) earnings | -194 | -38 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 194 | 38 |
Financing activities | ' | ' |
Increase in long-term advances to related parties | -357 | -50 |
Decrease in long-term advances to related parties | 357 | 50 |
Parent [Member] | ' | ' |
Operating activities | ' | ' |
Net (loss) earnings | 79 | -1 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 19 | 179 |
Cash flows provided from operating activities | 98 | 178 |
Financing activities | ' | ' |
Dividend payments | -36 | -31 |
Net change in bank indebtedness | -1 | ' |
Change in revolving bank credit facility | -140 | ' |
Repayment of long-term debt | ' | -71 |
Stock repurchase | ' | -147 |
Increase in long-term advances to related parties | ' | 24 |
Decrease in long-term advances to related parties | -357 | ' |
Other | 3 | 3 |
Cash flows (used for) provided from financing activities | -531 | -222 |
Net decrease in cash and cash equivalents | -433 | -44 |
Cash and cash equivalents at beginning of period | 439 | 275 |
Cash and cash equivalents at end of period | 6 | 231 |
Guarantor Subsidiaries [Member] | ' | ' |
Operating activities | ' | ' |
Net (loss) earnings | 130 | 45 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | -113 | -27 |
Cash flows provided from operating activities | 17 | 18 |
Investing activities | ' | ' |
Additions to property, plant and equipment | -71 | -75 |
Proceeds from disposals of property, plant and equipment | ' | 10 |
Acquisitions of businesses, net of cash acquired | ' | -7 |
Cash flows used for investing activities | -71 | -72 |
Financing activities | ' | ' |
Net change in bank indebtedness | -7 | -17 |
Repayment of long-term debt | -2 | -25 |
Increase in long-term advances to related parties | 47 | 26 |
Other | ' | -2 |
Cash flows (used for) provided from financing activities | 38 | -18 |
Net decrease in cash and cash equivalents | -16 | -72 |
Cash and cash equivalents at beginning of period | 22 | 72 |
Cash and cash equivalents at end of period | 6 | ' |
Non-Guarantor Subsidiaries [Member] | ' | ' |
Operating activities | ' | ' |
Net (loss) earnings | 64 | -7 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 66 | -6 |
Cash flows provided from operating activities | 130 | -13 |
Investing activities | ' | ' |
Additions to property, plant and equipment | -30 | -43 |
Proceeds from disposals of property, plant and equipment | 1 | ' |
Acquisitions of businesses, net of cash acquired | -546 | -4 |
Investment in joint venture | ' | -1 |
Cash flows used for investing activities | -575 | -48 |
Financing activities | ' | ' |
Net change in bank indebtedness | 8 | ' |
Repayment of long-term debt | -1 | -1 |
Proceeds from receivable securitization facilities | 90 | ' |
Payments on receivable securitization facilities | -84 | ' |
Increase in long-term advances to related parties | 310 | ' |
Decrease in long-term advances to related parties | ' | -50 |
Other | 1 | ' |
Cash flows (used for) provided from financing activities | 324 | -51 |
Net decrease in cash and cash equivalents | -121 | -112 |
Impact of foreign exchange on cash | ' | -1 |
Cash and cash equivalents at beginning of period | 194 | 314 |
Cash and cash equivalents at end of period | $73 | $201 |